The Commission settled an insider trading case with a corporate executive who repeatedly used inside information from his company to trade. The settlement was with Robert D. Ramnarine, formerly an executive at Bristol-Myers Squibb Co. SEC v. Ramnarine, Civil Action No 2:12-cv-0437 (D.N.J. Filed August 2, 2012. Mr. Ramnarine was also charged in a criminal action that has been resolved. U.S. v. Ramnarine, 3-13-cr-00387 (D. N.J.).

Mr. Ramnarine had been employed by Bristol-Myers from 1997 through August 2012. During that period he held several positions. In the last four years of his employment Mr. Ramnarine held senior level positions. As part of his duties he participated in evaluating potential acquisition targets.

The SEC’s complaint alleged that Mr. Ramnarine traded on material non-public information misappropriated from his company on three occasions:

  1. Prior to the June 29, 2012 acquisition of Amylin Pharmaceuticals, Inc., reaping profits of $55,784;
  2. Prior to the November 20, 2011 announcement that Pharnasset, Inc. , a company he helped evaluate for his employer but which was acquired by Glead Sciences, Inc. following an auction, obtaining trading profits of $225,026; and
  3. Before the announcement in late August 2010 that his employer would acquire ZynoGenetics, obtaining trading profits of $30,551.

This week Mr. Ramnarine settled with the Commission. The Court entered a financial judgment permanently enjoining him from future violations of Securities Act Section 17(a) and Exchange Act Sections 10(b) and 14(a). He was also ordered to pay disgorgement of $311,361 along with prejudgment interest and was barred from serving as an officer or director of a public company. Funds frozen in his securities account will also be transferred to he agency. The Commission may move at a later time for the imposition of a penalty. See also Lit. Rel. No. 22754 (July 22, 2013).

In the parallel criminal case Mr. Ramnarine pleaded guilty to one count of securities fraud. In entering his plea he admitted trading in the securities of the three companies and having profits of over $300,000. Sentencing is scheduled for September 26, 2013.