A Long Valley man and former pharmaceutical company executive who pleaded guilty to insider trading last week will be forced to pay back and money he made in a $1.4 million scheme that lasted nearly five years.
John Lazorchak, who was arrested last November for using his post as the director of financial reporting at Celgene Corp., was at the center of the insider-trading ring that included high school classmates.
Lazorchak, along with three others, pleaded guilty last Monday, according to nj.com. He’s being ordered to give up any “ill-gotten gains” received from the scheme, the report said, but is not facing any fines due to his cooperating with the Securities and Exchange Commission, the report said.
On top of the illegal trading profit payback, Lazorchak will need to pay $71,000 in prejudgment interest, the report said.
Lazorchak was originally charged with 26 counts of securities fraud after surrendering to the FBI in 2012.
According to the complaint filed against the men, Lazorchak was at the center of the insider trading network and regularly disclosed non-public information about Celgene’s anticipated corporate acquisitions, quarterly earnings and regulatory news to Cupo between September 2007 and June 2012.