FDA Chemist Made Millions Off Insider Data: Feds

Maybe just a wee bit too greedy? Feds say an FDA chemist figured out that his inside information about drugs under review by the agency could pay off in the stock market, and he reaped at least $3.6 million since 2006, reports Bloomberg. The SEC and the Justice Department filed charges against Cheng Yi Liang, 57, who allegedly made trades ahead of 27 FDA announcements involving 19 companies, notes the Wall Street Journal. His son also was charged.

"Liang traded in the securities of developmental drug companies, as opposed to larger drug companies,'' explained the SEC. With these types of companies, "an FDA decision positive or negative would likely have a significant impact on the stock price of the drug company, and therefore generate a greater opportunity to profit." (More SEC stories.)