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Dighton, Massachusetts police chief charged with insider trading




A Massachusetts police chief is one of several insider trading charges filed by the US Securities and Exchange Commission (SEC), accused of collectively making more than $2.2 million in illegal profits by trading stocks and options based on received inside information. Prosecutors say Dighton Police Chief Shawn Cronin, 43, engaged in an insider trading scheme surrounding the announcement of one pharmaceutical company’s acquisition of another. Investigators say Cronin received the information from Joseph DuPont, who was vice president of Alexion Pharmaceuticals Inc. at the time. Prosecutors say DuPont was informed of Alexion̵[ads1]7;s upcoming acquisition of Portola Pharmaceuticals Inc. in late January 2020. The acquisition was announced in early May. According to the court documents, DuPont provided information about the acquisition to Cronin, who was his childhood friend, before the acquisition was publicly announced. Cronin was a sergeant for the Dighton Police Department at the time before later being named police chief. Federal prosecutors say Cronin supervised DuPont in his capacity as a reserve officer for the department. Prosecutors said that based on the information that DuPont gave Cronin, Cronin purchased shares of Portola stock as well as out-of-the-money call options for Portola stock. . Cronin brought this information to two of his friends, identified by the SEC as Jarett Mendoza of North Dighton and Stanley Kaplan of Brooklyn, who in turn advised the police chief on trading strategies. The SEC says Kaplan then illegally forwarded the information to his friend. and colleague, Paul Feldman, of Poughquag, New York. The four men continued to invest in Portola stock before the deal was finalized, according to the SEC. The SEC said Kaplan and Feldman notified relatives and friends about the acquisition, several of whom also bought Portola stock before the announcement. Cronin surrendered to authorities on Thursday and is charged with three counts of securities and bid-rigging, each of which carries a maximum penalty of 20 years in prison. DuPont also surrendered to authorities in Massachusetts, while Kaplan and Feldman were arrested in New York state. Each faced securities and bid-rigging charges, federal prosecutors said. Mendoza previously pleaded guilty under a cooperation agreement, prosecutors said. The Dighton Board of Selectmen held an emergency meeting, and placed Cronin on paid administrative leave pending an administrative investigation. A written statement from an Alexion spokesperson said: “We cannot comment on legal matters involving former employees.”

A Massachusetts police chief is one of several insider trading charges filed by the US Securities and Exchange Commission (SEC), accused of collectively making more than $2.2 million in illegal profits by trading stocks and options based on received inside information.

Prosecutors say Dighton Police Chief Shawn Cronin, 43, engaged in an insider trading scheme surrounding the announcement of one drug company’s acquisition of another.

Investigators say Cronin received the information from Joseph DuPont, who was vice president of Alexion Pharmaceuticals Inc. at the time.

Prosecutors say DuPont was informed of Alexion’s upcoming acquisition of Portola Pharmaceuticals Inc. in late January 2020. The acquisition was announced in early May.

According to the court documents, DuPont provided information about the acquisition to Cronin, who was his childhood friend, before the acquisition was publicly announced.

Cronin was a sergeant for the Dighton Police Department at the time before later being named police chief. Federal prosecutors say Cronin supervised DuPont in his capacity as a reserve officer for the department.

Prosecutors said that based on the information that DuPont gave Cronin, Cronin purchased shares of Portola stock as well as out-of-the-money call options for Portola stock.

Cronin brought this information to two of his friends, identified by the SEC as Jarett Mendoza of North Dighton and Stanley Kaplan of Brooklyn, who in turn advised the police chief on trading strategies.

The SEC says Kaplan then illegally forwarded the information to his friend and associate, Paul Feldman, of Poughquag, New York.

The four men continued to invest in Portola stock before the deal was finalized, according to the SEC.

The SEC said Kaplan and Feldman notified relatives and friends about the acquisition, several of whom also bought Portola stock before the announcement.

Cronin surrendered to authorities on Thursday and is charged with three counts of securities and tender fraud, each of which carries a maximum penalty of 20 years in prison.

DuPont also surrendered to authorities in Massachusetts, while Kaplan and Feldman were arrested in New York state. Each faced securities and bid-rigging charges, federal prosecutors said.

Mendoza previously pleaded guilty under a cooperation agreement, prosecutors said.

The Dighton Board of Selectmen held an emergency meeting, and placed Cronin on paid administrative leave pending an administrative investigation.

A written statement from an Alexion spokesperson said: “We cannot comment on legal matters involving former employees.”



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