Leah B. Foley United States Attorney for the District of Massachusetts | Department of Justice
A New Jersey biostatistician has been indicted in Boston on charges of securities fraud, accused of making over $450,000 through insider trading involving a Massachusetts pharmaceutical company.
Hong Wang, 59, from East Brunswick, New Jersey, was arrested at his home and faces three counts of securities fraud. According to the indictment, Wang worked as a consultant for a Massachusetts-based pharmaceutical firm identified as Company A. In 2023, while consulting for the company, he allegedly obtained confidential information about an upcoming announcement in December regarding positive test results for one of its cancer drugs.
Prosecutors allege that Wang used this information to buy more than 150,000 shares of Company A through several brokerage accounts under his control during a period of approximately 22 days before the public disclosure. After the announcement was made by Company A in December, Wang is said to have sold 20,000 shares and kept the rest. The indictment claims that these trades resulted in profits exceeding $450,000.
The maximum penalty for each count of securities fraud is up to 20 years in prison, three years of supervised release, and a fine up to $5 million. Sentencing will be determined by a federal judge according to U.S. Sentencing Guidelines and relevant statutes.
Additionally, the Securities and Exchange Commission has filed a civil complaint against Wang alleging violations of federal securities laws.
United States Attorney Leah B. Foley stated: "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." Ted E. Docks, Special Agent in Charge of the Federal Bureau of Investigations Boston Division also participated in announcing the charges. Assistant U.S. Attorney Benjamin A. Saltzman from the Securities, Financial & Cyber Fraud Unit is leading the prosecution.
