The U.S. Securities and Exchange Commission (SEC) recently settled charges against Philip Markin, a resident of Weehawken, New Jersey, employed as an elevator mechanic, for insider trading in a scheme to trade ahead of a pharmaceutical company tender offer. He is the fifth individual charged in connection with the alleged insider trading scheme.
The SEC’s complaint, filed in the U.S. District Court for the Southern District of New York, charged Markin with violating Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder.
The SEC’s enforcement complaint alleges that Markin’s cousin was in a romantic relationship with an associate of a law firm representing Merck, a global health care company with products that include prescription medicines, vaccines, biologic therapies, and animal health products. Merck negotiated with, and eventually acquired Pandion, a clinical-stage biopharmaceutical company that developed therapeutics for patients with autoimmune disease. The cousin’s romantic partner was an associate at a law firm that represented Merck on the Merck-Pandion Deal, and she was part of the team assigned to the negotiations, which gave her access to material, nonpublic information.
The law firm associate frequently worked on the Merck-Pandion Deal from her apartment, where Markin’s cousin was often staying, and she kept a binder of documents concerning the Merck-Pandion Deal in the apartment. On multiple occasions, without the law firm’s associate’s consent and while she could not observe him, Markin’s cousin reviewed the Associate’s binder of documents concerning the Merck-Pandion Deal.
The cousin tipped the material nonpublic information to Markin who, in turn, tipped others, and together the group communicated via an encrypted messaging application that contained a “disappearing message” feature, which would automatically delete message content after a certain time period. Prior to the public announcement of Merck’s acquisition of Pandion, Markin and other members of the alleged insider trading ring purchased Pandion stock. When the public announcement was made, the stock price increased, providing Markin a profit of approximately $16,362.
Without admitting or denying the allegations in the SEC’s complaint, Philip Markin consented to the entry of a final judgment, subject to court approval, that would permanently enjoin him from violating the charged securities laws provisions and order him to pay a civil penalty in the amount of $32,724.
Are You Under Investigation for Insider Trading?
Insider trading attorney David Chase, Esq. of the Law Firm of David R. Chase, has successfully represented individuals in SEC insider trading investigations around the nation for more than two decades after having served as Senior Counsel in the SEC’s Enforcement Division. If you are under investigation for insider trading and need strategic advice from an experienced SEC defense attorney, contact David at: 800-760-0912 or e-mail him at: david@davidchaselaw.com. Visit the Firm’s website for valuable content and to review the firm’s prior successful SEC defense results at: www.securitiesfrauddefense.net.
