Sources have revealed that a hedge fund manager of Indian origin has been charged with participating in a stock market insider trading scam involving generic drugs that allegedly netted him at least $25 million in profits, according to US authorities and the New York federal prosecutor Preet Bharara has said that Sanjay Valvani made a deal with a former US drug regulatory official to get “highly confidential” information about pending approval of generic drug applications in illegal profits.
The authorities have alleged that as part of their deal, Gordon Johnston, a former deputy director at the US Food and Drug Administration (USFDA) dealing with generic drugs, gave Valvani inside information about the approval of the generic version of the drug enoxaparin that is used to treat deep vein thrombosis.
It is also stated that Valvani is the latest person of Indian origin to face insider trading charges. Rajat Gupta, former CEO of the consultancy company, McKinsey, is the best known of them and was convicted in 2012 on insider trading with Raj Rajaratnam, a hedge fund operator of Sri Lankan origin.
