Alexion
Insider
Trading
Triggered
Indictments
Now Feldman
Gets 3 Months
After
Unsealing
by
Matthew Russell Lee, Patreon Book
Substack
SDNY COURTHOUSE,
May 23 – 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." He
submitted a
video under
seal.
On
May 17, Judge
Woods to his
credit
docketed:
"ORDER as to
Paul Feldman:
The sentencing
submission by
Dr. Paul
Feldman
includes a
link to an
approximately
20 minute-long
video
containing
testimonials
on behalf of
Dr. Feldman by
his patients
and
colleagues.
Dkt. No. 112
at 4. The
Court has not
been presented
with
sufficient
justification
for that video
to be filed
under seal in
its entirety.
The Court
notes that it
did not order
the production
of anymedical
information to
it. As a
result, the
Court
understands
that any
individual who
may have
disclosed
medical
information to
the Court in a
testimonial on
behalf of Dr.
Feldman
voluntarily
offered that
information.
The
presumption of
public access
applies to the
video.
Accordingly,
Dr. Feldman is
ordered to
file a written
transcript of
the video."
On
May 23 Feldman
got... three
months in
Otisville.
"JUDGMENT IN A
CRIMINAL CASE
as to Paul
Feldman (4).
THE DEFENDANT:
pleaded guilty
to Count 6 of
the
Indictment.
Count all open
counts are
dismissed on
the motion of
the United
States.
IMPRISONMENT:
3 Months. The
court makes
the following
recommendations
to the Bureau
of Prisons:
The Court
recommends
that the
Bureau of
Prisons
designate the
defendant to
FCI Otisville.
The defendant
shall
surrender for
service of
sentence at
the
institution
designated by
the Bureau of
Prisons:
before 2 p.m.
on 7/12/2024."
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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