The SEC’s complaint, filed on December 17, 2021, alleges that Catenacci, a Chicago, Illinois based medical doctor, entered into a consulting agreement with Five Prime to serve as a lead clinical investigator for the company’s Bemarituzumab drug trial. Through this role, Catenacci allegedly learned material nonpublic information about the positive drug trial results for Bemarituzumab. According to the SEC, shortly after he allegedly learned of the positive results, Catenacci purchased 8,743 shares of Five Prime. After the company publicly announced the positive drug trial results, Five Prime’s share price increased over 300%. The next day, Catenacci allegedly sold all of his shares, realizing illicit gains of $134,142. Without admitting or denying the allegations, Catenacci consented to the entry of a final judgment that permanently enjoins him from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The final judgment also orders Catenacci to pay a $50,000 penalty.
Source: SEC Obtains Final Judgment Against IIIinois Resident for Insider Trading
