Indian American ex-Pfizer employee convicted of insider trading
Amit Dagar stole information from Pfizer, and used that illegal edge to profit in the stock market
Amit Dagar, a former Indian American employee of Pfizer, has been convicted of insider trading to reap illicit profits with inside information about the results of clinical trials of Paxlovid, a medicine used to treat Covid-19.
A jury in the Southern District of New York returned a guilty verdict against Dagar, 44, of Hillsborough, New Jersey, for insider trading and conspiracy to commit insider trading guilty following a two-week trial before US District Judge Andrew L. Carter.
Indian American brothers agree to settle crypto insider trading charges (May 31, 2023)
Dagar was convicted of one count of securities fraud, which carries a maximum sentence of 20 years in prison, and one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison.
“As the jury’s swift verdict shows, the proof at trial was overwhelming that Amit Dagar stole information about Paxlovid from his employer, Pfizer, and used that illegal edge to profit in the stock market,” Damian Williams, US Attorney for the district stated Jan 18.
“Combatting the corruption of our financial markets continues to be a top priority of this Office. Would-be insider traders tempted by the prospect of easy money should know that the Southern District of New York is watching, we’ll catch you, and we’ll make sure you pay the price for violating the law.”
Indian American pleads guilty in first-ever crypto insider trading case (September 14, 2022)
According to the Indictment, statements made in public court proceedings and filings, and the evidence at trial, Dagar participated in an insider trading scheme to reap illicit profits from options trading based on inside information in November 2021.
Dagar, who assisted in managing the data analysis in certain clinical drug trials, learned on November 4, 2021, that a Pfizer trial of the drug Paxlovid, a medicine designed to treat mild to severe Covid‑19 infection, had produced positive results.
The results were confidential and meant to remain so until Pfizer publicized them on November 5, 2021.
Indian American Puneet Dikshit gets 24 months jail for insider trading (April 8, 2022)
Later that same day, and while the results remained confidential, Dagar purchased short-dated, out-of-the-money Pfizer call options that expired days and weeks later. Dagar also tipped a close friend, who also purchased short-dated, out-of-the-money Pfizer call options.
The following day, on November 5, 2021, Pfizer publicly released the results of its Paxlovid study prior to the market opening. That same day, following the publication of the positive results, Pfizer’s stock price increased substantially, opening — and eventually closing — more than 10% higher than the prior day’s closing price.
Seven Indian Americans charged in $1 million insider trading ring (March 30, 2022)
In the following weeks, Dagar sold his Pfizer call options for profits of more than $270,000.
