Business

SEC charges Chicago oncologist with insider trading

By
Reuters
Published Dec. 20, 2021, 3:39 p.m. ET

US authorities have charged a Chicago doctor with insider trading, accusing him of using nonpublic information about drug trial results to reap illicit profits from buying shares of a California-based biotechnology company.

The Securities and Exchange Commission (SEC) and federal prosecutors in Illinois said in statements on Monday they have charged a gastrointestinal medical oncologist, Daniel V.T. Catenacci, related to trading in securities of Five Prime Therapeutics.

The doctor, Daniel V.T. Catenacci, bought shares of the biotechnology company in advance of a Nov. 10, 2020, announcement it had gotten positive drug trial results for a cancer drug.

Authorities accused Catenacci of learning material nonpublic information about the positive results through his role as a lead clinical investigator for the drug trial.

Catenacci did not respond to emails and calls for comment.

A sign that says Five Prime on the exterior of a building
The SEC contends that Daniel V.T. Catenacci reaped $134,000 in illegal gains via stock in California pharmaceutical company Five Prime Therapeutics. Gado via Getty Images

Catenacci made more than $134,000 in illegal profits from the purchase and sale of the securities, according to criminal information filed on Friday and detailed in Monday’s statements.

He has agreed to pay a civil penalty in an amount to be determined by the court at a later date, the SEC said. The settlement is subject to court approval.

Catenacci is an associate professor of medicine and oncologist, according to his LinkedIn profile and biography on the University of Chicago’s Web site.