On August 22, 2022, the US Attorney’s Office for the Southern District of New York announced that Frank Glassner, the principal of an executive compensation consulting firm in California, had pleaded guilty to one count of securities fraud in connection with an insider trading scheme. The charges were initially filed against Glassner in May 2022 in parallel with a civil case by the Securities and Exchange Commission, which charged Glassner with trading on material non-public information acquired as part of his engagement with Kadmon Holdings Inc., a biopharmaceutical company whom Glassner was advising in connection with the company’s anticipated acquisition by Sanofi S.A. Following the public announcement about the acquisition, Kadmon’s stock price rose by 71 percent, and Glassner realized almost $405,000 in profits.
The SEC case has not yet concluded. Glassner is scheduled to be sentenced in the criminal case on December 6, 2022.