2 Men Charged With Trading On Drug Co. Merger Tips

Law360, New York (September 15, 2011, 5:44 PM EDT) -- Federal prosecutors in New York said Thursday that they had filed insider trading charges against an ex-consultant and a film producer who allegedly participated in a $2.6 million scheme to trade ahead of drug company takeovers.

Scott Allen, a former consultant at Mercer LLC, tipped friend John Bennett, a film producer, about two drug company buyouts in 2008 and 2009, prosecutors claim in criminal complaints unsealed Thursday. The men each face two charges of securities fraud and one conspiracy charge.

“Scott Allen and John Bennett were...
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