Last Aug. 17, Jason Chan started his job as a director of biostatistics at a small biotech called Akebia Therapeutics. Just two days later, he began buying Akebia stock based on information he learned about study results for a key drug while attending meetings.
Within days, his wife and a friend to whom he owed money also began buying shares.
The US Department of Justice charged Chan on Tuesday with securities fraud. And the US Securities and Exchange Commission filed a lawsuit against Chan alleging insider trading and wants him to return $68,000 in illegal profits as part of a scheme that netted his wife $115,000 and the friend another $105,000, according to the lawsuit, which was filed Tuesday in federal court in Boston.Maybe I am completely naive and fooled and the SEC can barely catch all the people who are insider trading, but it sure seems like a whole lot of people get caught doing that. What are they thinking?!?!