Robert Gadimian, the Los Angeles-based company's former senior director of regulatory affairs, pleaded guilty in federal court in Boston to seven counts of securities fraud over illicit trades that prosecutors say allowed him to earn over $1 million.
SEC swept up a few others too. According to the SEC's complaint, Stephen J. Leonard, a resident of Palm Harbor, Florida, made $107,000 in illicit profits by trading in the stock of Puma Biotechnology, Inc., a California-based biotechnology company where his sibling worked in a senior position, before Puma announced positive clinical trial results for its cancer drug.
Once they put Gadimian's nuts in the vice, he rolled over on those poor pricks that acted on his tips.
There is no way in hell that this type of information was disseminated to Sr. Directors like that. Someone very high up spilled the beans. Unfortunately, RG and PL were the idiots who decided to act on it.
