US federal authorities have charged two individuals of Indian origin, Amit Dagar and Atul Bhiwapurkar, with insider trading with Pfizer COVID-19 Medicine.
Dagar (44), a former Pfizer employee, and his business partner, Bhiwapurkar (45), are accused of trading on inside information about the results of clinical trials for Pfizer’s COVID-19 medicine, Paxlovid.
The Securities and Exchange Commission (SEC) filed civil charges, while the US Attorney’s Office for the Southern District of New York brought criminal charges against them.
Dagar and Bhiwapurkar allegedly made illicit profits through options trading based on non-public information about the successful trial. Dagar’s position at Pfizer provided him with inside knowledge, and the duo’s trading resulted in significant one-day investment returns.
The charges carry potential prison sentences of up to 20 years and seek financial penalties and expulsion of profits.
