The United States Securities and Exchange Commission has entered consent judgments against two defendants charged with insider trading. The SEC’s complaint alleges that while serving as vice president of clinical research at a large pharmaceutical company, Winson Tang tipped a friend and business associate, Deshan Govender, about a pending licensing agreement with another large pharmaceutical company. Govender in turn tipped Steven Fishoff and other members of Fishoff’s insider-trading ring. The complaint further alleges that Fishoff paid Govender about $222,000 for the inside information, and he and his associates gained approximately $1.5 million on illegal trades based on the inside information.
Pursuant to the consent judgment, Tang and Govender are permanently enjoined from violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Tang will pay a civil monetary penalty of $750,000 and be barred from serving as officer or director for five years. The court has not yet determined the issue of monetary relief vis-à-vis Govender.
Fishoff and four of his associates pleaded guilty to insider trading in related actions several years ago, while the SEC’s insider trading claims against them in this case remain pending.