FDA Chemist Charged With Insider Trading

The Securities & Exchange Commission has charged an FDA chemist with illegally profiting from knowledge of upcoming drug approval announcements. The alleged insider trading scheme netted Cheng Yi Liang, an employee of FDA’s Center for Drug Evaluation & Research, more than $3.6 million in gains and avoided losses. SEC charges that Liang hid his trading activities in brokerage accounts held in the names of others, including his mother, who lives in China. Overall, Liang is alleged to have illegally traded in advance of at least 27 public announcements about FDA drug approval—or disapproval—decisions involving 19 publicly traded companies. In addition to the SEC civil action, the U.S. Justice Department has brought criminal charges against Liang.