NEWARK, N.J. (AP) - Two New Jersey men who prosecutors say were primary players in a network that illegally traded on insider tips from pharmaceutical executives have been sentenced to prison.
New Jersey’s U.S. attorney says 50-year-old Lawrence Grum of Livingston and 50-year-old Michael Castelli of Morris Plains were sentenced on Wednesday in federal court in Newark. Grum was sentenced to one year and one day in prison, and Castelli to nine months.
Both men previously pleaded guilty to conspiracy and securities fraud counts.
Prosecutors say the two repeatedly used information obtained from insiders at New Jersey-based pharmaceutical and medical technology firms to engage in a long-running insider trading scheme that netted more than $1 million.