Cheng Yi Liang, a chemist at the Food and Drug Administration, and his son Andrew Liang have been arrested and charged with insider trading, reports NPR's Shots blog. Cheng Yi Liang had access to FDA's internal database that included upcoming announcements regarding drug approvals and, with the help of his son, he allegedly traded on that information to make more than $3.6 million since 2006, according to this statement from the US Securities and Exchange Commission. The SEC says that Liang benefitted from 27 insider trades, including ones of stocks from Clinical Data, Momenta Pharmaceuticals, and Vanda Pharmaceuticals. "In each instance, he traded in the same direction as the announcement," the SEC alleges. "Liang went to great lengths to conceal his insider trading. He traded in seven brokerage accounts, none of which were in his name. One belonged to his 84-year-old mother who lives in China."
FDA Chemist Charged
Mar 31, 2011