On April 9, 16, and 22, five individuals were sentenced for their roles in an insider trading scheme based on information divulged by insiders at pharmaceutical/medical technology firms in New Jersey.  Lawrence Grum and Michael Castelli allegedly were the primary traders in the scheme.  Grum was sentenced to one year and one day in prison, while Castelli was sentenced to nine months in prison.  Grum and Castelli made profitable trades based on nonpublic information including merger and acquisition plans, quarterly earnings results, and a regulatory decision provided by Mark Cupo, a former executive of a pharmaceutical and medical technology company.  Cupo provided information about his employer and also received information from others, including John Lazorchak, a former executive at a pharmaceutical technology firm, and Mark Foldy, an executive at another medical technology firm.  Cupo was sentenced to 16 months in prison.  Foldy was sentenced to two years of probation, including six months of home confinement.  United States v. Grum, 13 CR 0737 (D.N.J.); United States v. Castelli, 13 CR 0656 (D.N.J.); United States v. Cupo, 13 CR 0658 (D.N.J.); United States v. Lazorchak, 13 CR 0656 (D.N.J.); United States v. Foldy, 13 CR 0659 (D.N.J.)

DOJ Press Release 04/9/2014

DOJ Press Release 4/16/2014

DOJ Press Release 04/22/2014