Prominent Cardiologist charged
with insider trading
Sept
10, 2010 - (Tip Report) Atlanta - A prominent Georgia cardiologist
who just recently was recognized by the Governor of Georgia for
his work was charged Friday, Sept. 10, 2010 by the SEC with insider
trading in the stock of Sciele Pharma, Inc. (Nasdaq: SCKX), which
was acquired by Japanese pharmaceutical company Shionogi &
Co., Ltd. (Otc: SGIOF).
The
SEC said that Dr. Bobby V. Khan, acted on information he obtained
from a previous director of the company in buying shares shortly
before the acquisition was announced.
Following his receipt of this information,
Khan opened an online brokerage account, his first since 2003.
Khan then transferred approximately one-third of his then-liquid
net worth into that account and purchased a combined total of
4,000 shares of Sciele stock, days before Shionogi's public announcement
of its tender offer for Sciele shares on Labor Day, Sept. 1, 2008.
Following the tender offer announcement, Khan sold all of his
Sciele shares in October 2008, realizing substantial profits and
returns in less than two months.
The SEC says it is seeking a permanent injunction, disgorgement
and prejudgment interest, and civil monetary penalties.
The
SEC complaint says that Dr. Khan conned the then-executive of
Sciele Pharma over phone conversations and dinner, swearing he
would keep the information quite, only to dash out and throw all
of his available cash at the deal. Regulators said Khan earned
$45,000 in under two-months for a return on his money of 60 percent.
The
then-Scie1e Officer who slipped Khan the insider information also
served as a member of the Advisory Board of InVase and in 2009,
became a director of that Corporation. InVase is the same entity
that the Governor of Georgia gave an award to Khan over. The SEC
is afraid Khan may Con again, so they asked for a permanent injunction
barring him from playing in stocks.
The
Governor of Georgia's office has not commented on the charges
levied against such a pillar of the state's business community.
