Former FDA Chemist Gets 5 Years for Insider Trading
Published: Mar 07, 2012
A U.S. Food and Drug Administration chemist on Monday was sentenced to five years in federal prison after pleading guilty to insider trading by using confidential information about drug approvals. Cheng Yi Liang, 58, admitted buying and selling stock in more than two dozen companies with confidential FDA information to rack up just over $3.77 million in profits and avoid losses between July 2006 and March 2011. He pleaded guilty to two counts of securities fraud and making false statements. His son was also initially charged in the case but prosecutors later dismissed those charges.