Jay Clayton, U.S. Attorney for the Southern District of New York | Department of Justice
A former corporate executive has admitted to participating in an insider trading scheme involving the stock and options of Doximity, a company that provides online networking services for medical professionals. Paul Jorgensen, who served as Chief Revenue Officer at Doximity, pleaded guilty to securities fraud charges in federal court before U.S. District Judge Katherine Polk Failla.
U.S. Attorney Jay Clayton stated, “Paul Jorgensen repeatedly used Doximity’s confidential information to trade in advance of the company’s quarterly earnings calls, earning himself more than $2.5 million in illegal profits. Corporate executives should be working for the benefit of the companies and shareholders they serve, not scheming to line their own pockets by trading on inside information. Together with our law enforcement partners, we will continue to protect our financial markets and prosecute those who misuse non-public information.”
Christopher G. Raia, Assistant Director in Charge of the FBI’s New York Field Office, said, “Paul Jorgensen repeatedly leveraged nonpublic information to conduct illegal trades from an unauthorized personal account, garnering millions of dollars in illicit proceeds. The defendant’s actions greatly exploited his position of trust for his own personal gain, even as he learned he was likely to be terminated from the company. May today’s plea emphasize the FBI’s commitment to protect companies from internal executives who prioritize personal wealth over their duty to company shareholders.”
According to court documents and statements made during proceedings, Jorgensen joined Doximity in 2017 and rose to become Chief Revenue Officer by 2022. In this role, he had access to sensitive financial data about the company's performance and outlook—information that was restricted from public disclosure ahead of quarterly earnings announcements.
Doximity had policies prohibiting employees from trading its shares or options prior to earnings calls and required all employee-held shares be maintained in monitored brokerage accounts.
In July 2022, after learning about a decline in sales (“upsells”) at a board meeting where negative results were discussed ahead of an upcoming earnings call, Jorgensen initially told a family member he would not sell his shares due to possessing confidential information. However, following news that he was being reassigned within the company two days later, he reversed course and sold over 61,000 shares held secretly outside company oversight.
After Doximity publicly reported disappointing results on August 4, 2022—which led its share price to drop roughly seven percent—Jorgensen avoided losses exceeding $300,000 through these transactions.
In July 2023, upon learning both about further sales declines and his impending termination as part of broader layoffs set for announcement on another quarterly call, Jorgensen again traded using inside knowledge: selling additional shares and call options for hundreds of thousands in profits while purchasing put options that netted him nearly two million dollars when Doximity announced layoffs and guidance cuts on August 8; its share price then fell by approximately 23 percent.
Jorgensen pleaded guilty to two counts of securities fraud; each count carries a maximum penalty of up to 20 years’ imprisonment. Sentencing is scheduled for May 21, 2026.
U.S. Attorney Clayton commended the FBI's efforts along with assistance from the U.S. Securities and Exchange Commission during this investigation.
The prosecution is being handled by Assistant U.S. Attorney Alexandra Rothman from the Securities and Commodities Fraud Task Force.
