NJ drug company execs charged with insider trading

Associated Press Modified: November 19, 2012 at 5:31 pm •  Published: November 19, 2012
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Lazorchak also allegedly passed the information to Foldy and Michael Pendolino, a Nashua, N.H., chiropractor who was a high school friend of Lazorchak's. Foldy and Pendolino tipped off friends and family members, the criminal complaint alleges.

Grum, 48; Castelli, 48, and Pendolino, 43, each face conspiracy and multiple securities fraud counts.

Other deals described in the complaint as being the subject of insider trading included Celgene's acquisition of Abraxis, Stryker's acquisition of Orthovita Inc. and Sanofi's acquisition of Tennessee-based Chattem Inc., maker of Gold Bond skin products and Icy Hot pain relief packs.

All six defendants were scheduled to make initial appearances in U.S. District in Newark on Monday afternoon. Via email, Foldy's attorney declined to comment; attorneys for the other five defendants didn't respond to emails.

A spokesman for Sanofi said Cupo resigned from the company "very recently." He said Cupo worked in the finance department as a senior director, a middle-management position, but was unsure how long Cupo was employed there. Sanofi is cooperating with the investigation, the spokesman said.

A spokesman for Celgene said in an email the company terminated Lazorchak on Monday.

"Celgene continues to cooperate fully with authorities on this matter and it is our understanding that the investigation involved only one employee and not the Company itself," spokesman Greg Geissman said. "Celgene is currently exploring its legal remedies. The actions taken by this employee violate Celgene's values, guiding principles and formal policies."

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AP Business Writer Linda A. Johnson contributed to this story from Trenton.