A chemist working for the U.S. Food and Drug Administration and his son have been charged with insider trading in a case that could have alarming implications for public health.
The "Securities and Exchange Commission charged Cheng Yi Liang, 57, and his son Andrew, 25, with illegally trading in advance of at least 27 public announcements about 19 publicly held companies," Reuters reports. Those suspect trades alledgedly made the men more than $3.6 million. The SEC filed its complaint in federal court in Maryland.(MD).
Insider trading, if proved, is not only illegal but it raises questions about the safety of the drugs we use. If chemists are using information to maximize profit they are clearly not putting the welfare of the public first.They are putting personal profit before an impartial evaluation of the safety of drugs we use every day.
The Liangs also face U.S. Justice Department charges of conspiracy, securities fraud and wire fraud related to $2.27 million in trades of stock for five drug companies over the past four years.
Cases like this where officials in positions of responsibility use their knowledge to profit can undermine public confidence in the system. In January, the Daily Press reported on a Virginia (VA) special agent with the Norfolk office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, who is under investigation following allegations he stole ATF owned cigarettes.
But when the issue is prescription drugs the risks can be higher. We recently highlighted how after more than 50 years on the market, the drug Darvon (propoxyphene) was pulled from the U.S. market. Why? Because studies have shown that using the medication ncreases the risk of heart arrhythmias, even in patients who do not have heart problems.
Some estimate that Darvon, most recently marketed by Xanodyne Pharmaceuticals, has killed at least 1,000 people in the United States.
We have also highlighted how a potentially perilous painkiller was being used at the Veterans Administration Hospital in Hampton, Virginia. Even so-called "bath salts" have been highlighted as a risk, causing hallucinations and deaths.
To say that this insider trading charge against the FDA chemist can undermine public confidence in the FDA approval process of new drugs is a huge understatement.
DM
About the Editors: Shapiro, Cooper, Lewis & Appleton personal injury law firm (VA-NC law offices ) edits the injury law blogs Virginia Beach Injuryboard, Norfolk Injuryboard and Northeast North Carolina Injuryboard as pro bono services.
Rick Shapiro has practiced personal injury law for over 30 years in Virginia, North Carolina, and throughout the Southeastern United States. He is a Board-Certified Civil Trial Advocate by the National Board of Trial Advocacy (ABA Accredited) and has litigated injury cases throughout the eastern United States, including wrongful death, trucking, faulty products, railroad, and medical negligence claims. During his three-decade career, Shapiro has won client appeals before the VA Supreme Court, VA Court of Appeals, NC Supreme Court, SC Supreme Court, WV Supreme Court, TN Supreme Court, and three times before the United States Court of Appeals for the Fourth Circuit, underscoring Shapiro’s trial achievements. In addition, he and his law firm have won settlements/verdicts in excess of $100 million. His success in and out of the courtroom is a big reason why he was named 2019 “Lawyer of the Year” in railroad law in U.S. News & World Report's Best Lawyers publication (Norfolk, VA area), and he has been named a “Best Lawyer” and “Super Lawyer” by those peer-reviewed organizations for multiple years. Rick was also named a “Leader in the Law, Class of 2022” by Virginia Lawyers Weekly (total of 33 statewide honorees consisting of lawyers and judges across Virginia). And in September 2023, Rick was selected as a recipient of the National Board of Trial Advocacy (NBTA) 2023 President’s Award. Although many nominations were submitted from across the country, Rick was just one of eight attorneys chosen by the prestigious National Board which certifies civil trial attorneys across the U.S. Rick was also recently named to Virginia Lawyers Weekly 2024 Virginia’s Go To Lawyers Medical Malpractice. The attorneys awarded this honor are nominated by their colleagues and chosen by a panel from the publication.
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