SAN BERNARDINO, Calif. (AP) - Two Southern California doctors will pay more than $100,000 to settle insider-trading allegations involving a drug they were testing.
The Securities and Exchange Commission announced Monday that Dr. Franklin Chu and Dr. Daniel Lama, both of San Bernardino, agreed to pay the fines. They didn’t acknowledge any wrongdoing.
The SEC alleged that the physicians were conducting drug trials of a prostate cancer drug called Capesaris in 2012 when they learned that the Food and Drug Administration had halted trials because of patient safety concerns.
The SEC claims the doctors then sold off stock in the drug’s developer, GTx Inc., to avoid trading losses.
After GTx publicly announced the trial halt a few days later, its stock dropped more than 36 percent.
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