FDA Chemist Pleads Guilty To $4M Insider Trading Plot

Law360, New York (October 18, 2011, 3:38 PM EDT) -- A U.S. Food and Drug Administration chemist pled guilty Tuesday in Maryland federal court to making $3.7 million through illegal stock trades based on nonpublic information about companies with pending drug applications.

Cheng Yi Lang copped to one count of securities fraud, which carries a maximum prison sentence of 20 years, and one count of lying to investigators, which carries a maximum sentence of five years. He also faces a $525,000 fine.

"In a shocking abuse of trust, Mr. Liang exploited his position ... to cash...
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