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Former ImClone chief fined $800,000 for insider dealing

Published on 24/10/03 at 04:46pm

Former ImClone boss Samuel Waksal has agreed to pay $800,000 to settle some of the charges brought against him by the US Securities & Exchange Commission.

The charges relate to the Founder and former Chief Executive of ImClone Systemssales of ImClone stock, made before the FDA rejection of the company promising new cancer drug Erbitux was made public on 28 December 2001.

Mr Waksal has also been permanently barred from serving as an officer or director of any public company and received an injunction against breaking antifraud laws.

The SEC called the measures a artial resolutionof the case against Mr Waksal and is now waiting for the outcome of a parallel criminal investigation before it decides whether to pursue further charges.

Wayne Carlin, Regional Director of the Commission Northeast Regional Office, said: aksal $800,000 payment sends a powerful message that the Commission will not allow corporate executives to profit personally from fraud on investors.

After learning of the FDA rejection of Erbitux on Boxing Day 2001, Mr Waksal bought 210 utoptions, in effect betting ImClone share price would dramatically fall and allow him to benefit. The sale of these options a few days later netted him $130,000.

Between 26 and 28 December he also attempted to sell nearly $5 million of his own ImClone stock, told his daughter to sell all her company share and tipped off another family member who sold both his own stock and that of a further family member.

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