BOSTON — This is an official press release from the U.S. Department of Justice (USAO - Massachusetts), published as received.
BOSTON – A New Jersey biostatistician was charged today in federal court in Boston with allegedly earning more than $450,000 by trading on the material non-public information of a Massachusetts company.
Hong Wang, 59, of East Brunswick, N.J., was charged in an indictment with three counts of securities fraud. Wang was arrested this morning at his home and will appear in federal court in Boston at a later date.
According to the indictment, Wang was a biostatistician who worked as a consultant for a Massachusetts pharmaceutical company (Company A). In 2023, during the course of his work for Company A, Wang allegedly obtained material non-public information about the fact that in December 2023, Company A planned to publicly announce positive test results concerning one of its cancer-treating drugs (the December Disclosure).
While in possession of this material non-public information, and in violation of his fiduciary duties to Company A, Wang allegedly bought shares of Company A in advance of the December Disclosure. Over a roughly 22-day period, Wang allegedly purchased more than 150,000 shares across several different brokerage account he controlled. Wang allegedly sold 20,000 shares after Company A made the December Disclosure and held the remainder of the shares. It is alleged that Wang earned more than $450,000 trading in the securities of Company A based on its material non-public information.
The charges of securities fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Securities and Exchange Commission has filed a civil complaint against Wang alleging violations of the securities laws.
United States Attorney Leah B. Foley and Ted E. Docks, Special Agent in Charge of the Federal Bureau of Investigations, Boston Division made the announcement. Assistant U.S. Attorney Benjamin A. Saltzman of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
