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by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, May 7 – As the fourth of four insider trading prosecutions announced on June 29, 2023 by the US Attorney for the Southern District of New York, Joseph Dupont, Shawn Cronin, Stanley "Slava" Kaplan, and Paul Feldman were charged with made more than $2.2 million dollars in illegal profits by trading in stocks and options based on MNPI that DUPONT misappropriated from his employer. 

   The four prosecutions come a week after the conviction in SDNY of Brijesh Goel, formerly of Goldman Sachs. Goel testified on his own behalf in a trial covered by Inner City Press, which is also reporteding weekly on the SDNY prosecutors murky deal with Sam Bankman-Fried to agree to extradition from the Bahamas apparently in exchange for not seeking detention (unlike on Avi Eisenberg) and now with the China bribe charges severed or dropped.

On January 23, 2024, two more guilty pleas: SHAWN CRONIN and PAUL FELDMAN each pled guilty before U.S. Magistrate Judge Sarah Netburn to one count of securities fraud in connection with their participation in an insider trading scheme surrounding the announcement of Alexion Pharmaceutical, Inc.’s acquisition of Portola Pharmaceuticals, Inc.  CRONIN and FELDMAN were arrested in June 2023.

DUPONT was a vice president at Alexion Pharmaceuticals, Inc. and, on January 31, 2020, was informed of Alexion’s upcoming acquisition of Portola Pharmaceuticals, Inc. 

Before that acquisition was publicly announced, in April 2020, DUPONT provided MNPI about the acquisition to his childhood friend, CRONIN. 

Not only were CRONIN and DUPONT childhood friends, but also CRONIN — who, at the time, was a sergeant in the police department of Dighton, Massachusetts, and later served as the chief of police — supervised DUPONT in DUPONT’s capacity as a reserve officer in that police department... CRONIN, KAPLAN, FELDMAN, and their tippees sold their shares of Portola and call options for Portola stock, reaping millions of dollars of illegally obtained trading profits.

   Also unsealed were charges against Jarett Mendoza, who has pled guilty pursuant to a cooperation agreement.

Another Niranjan?

Inner City Press attended the arraignment of Feldman and Kaplan, thread:

Both plead not guilty. AUSA: we're seeking bail for both. Kaplan $150,00 bond- Judge: And no guns? Defense lawyer Maimin: Sure.

Feltman $200,000 bond, travel to Eastern District of Pennsylvania as well

On July 14, Maimin wrote to Judge Woods that the Government that Doctor Kaplan at the time of his arrest that three firearms, now with the East Fishkill Police Department who says it can't keep them. So, to a friend, with the government's consent.

On July 24, Judge Woods held a conference. Inner City Press was there, thread:

OK- at Alexion insider trading case of US v Dupont, et al. 

One defense counsel opposes meeting before Judge Woods in 60 days, says he's entitled to vacation in August, proposes November.

Judge: Let's say four months from now.

 On September 15, 2023, with out notice, this: "Change of Plea Hearing as to Joseph Dupont held on 9/15/2023. Plea entered by Joseph Dupont (1) Guilty as to Count 2. Sentencing is scheduled for January 5, 2024, at 1:00 p.m"

On September 19, another shoe dropped: "Change of Plea Hearing as to Slava (Stanley) Kaplan held on 9/19/2023. Defendant Slava (Stanley) Kaplan (3) (out on bail) present. Defendant withdraws previously entered not guilty plea and enters a plea of GUILTY to Count 4 of the Indictment  Sentencing set for 1/5/2024 at 03:00 PM."

On November 27, the SEC case judgment was entered - will it be different for the SEC on Binance - and CZ? SEC says: "On November 27, 2023, the Honorable Vincent Marrero of the United States District Court for the Southern District of New York entered judgments by consent against defendants Joseph M. Dupont and Stanley Kaplan, who were each charged with insider trading in the securities of Portola Pharmaceuticals Inc."

On December 22, Dupont asked for a "non custodial" sentence (no jail time) at his sentencing in January.

On December 28, the US Attorney's Office asked for a sentence at the bottom of the Guidelines range of 8 to 14 months.

On January 5, Dupont said he was disappointed in himself; his lawyer pointed at supporters in the gallery, said he is a teenage daughter's best friend.

Judge Woods noted Dupont now works at a construction company for a quarter of what he once made. He sentenced Dupont to eight months at home (he came leave for work and other purposes) - no jail time. But a $75,000 fine.

Then Slava Kaplan got five months.

On April 29, 2024, counsel for Shawn Cronin asked for a non-incarceratory sentence on May 13, citing his service as Chief of the Dighton Police Department in Massachusetts.

On May 7, Paul Feldman asked for no jail time, with a redaction (apparently a video) and a description of kidney care in "the underserved areas of Hudson Valley, NY."

Inner City Press will stay on the case(s).

This case is US v. Dupont, et al., 23-cr-320 (Woods)

The SEC case is / was Securities and Exchange Commission v.  Dupont et al., 23-cv-05565 (Marrero)

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