Bristol-Myers Squibb Executive Arrested on Insider Trading Charges
An executive with global pharmaceuticals giant Bristol-Myers Squibb Co. (BMS) was arrested this morning on insider trading charges related to illegal trades he made based on information concerning three BMS acquisition targets, U.S. Attorney Paul J. Fishman announced.
Robert Ramnarine, 45, of East Brunswick, New Jersey, was charged in a criminal complaint with three counts of securities fraud. Ramnarine was arrested this morning by agents of the FBI and is scheduled to appear this afternoon before U.S. Magistrate Judge Madeline Cox Arleo in Newark federal court.
According to the complaint unsealed today:
Ramnarine has been employed by BMS since 1997, and from March 2008 to the present, held a variety of high-level, executive positions at the company, including director of pensions and savings investments (March 2008-June 2011), executive director of pensions and savings investments (June 2011-July 2012), and assistant treasurer for capital markets (since July 2012). As a result of these positions, Ramnarine was involved in evaluating potential BMS acquisition targets, including publicly traded companies, and was privy to inside company information concerning such transactions. At all times, he owed a fiduciary duty of trust and confidence to BMS not to disclose confidential information and material, non-public information he learned through his employment with BMS or to use such information for his personal benefit or the benefit of others.
Between August 2010 and June 2012, however, Ramnarine traded on material, non-public information regarding BMS’s anticipated acquisitions of the following publicly traded companies: ZymoGenentics Inc., Pharmasset Inc., and Amylin Pharmaceuticals Inc. The material, non-public information available to Ramnarine enabled him to reap substantial profits by engaging in lucrative trading in stock options of these companies shortly before they were either acquired by BMS, as in the cases of ZymoGenetics and Amylin, or by another company, as in the case of Pharmasset. Ramnarine generated approximately $311,361 in illicit profits pursuant to this scheme.
While trading on inside information he obtained through his work at BMS, Ramnarine attempted to conceal his illegal trading activities. In November 2011, Ramnarine learned that Pharmasset was participating in a limited auction process, whereby it would be sold to the highest bidder, and that the auction would close on November 17, 2011. Before trading ahead of the sale of Pharmasset, however, Ramnarine conducted numerous Yahoo! Internet searches from his work computer concerning means to avoid detection for insider trading, including the following terms: “can option be traced to purchaser”; “can stock option be traced to purchase inside trading”; and “insider trading options traceillegal [sic].” Based on these searches, as well as others between November 2, 2011, and November 3, 2011, Ramnarine visited a number of websites and viewed articles discussing the purpose of insider trading laws, examples of insider trading violations, as well as ways to avoid insider trading violations.
The securities fraud charge carries a maximum potential penalty of 20 years in prison and a fine of $5,000,000.
Source: U.S. Federal Bureau of Investigation
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