Securities and Exchange officials and federal prosecutors stated on Thursday that a Bristol Myers Squibb Co.(NYSE:BMY) executive took undue advantage of his powerful position to access non-public data to make a profit of $310,000 through illegal insider trading.
FBI arrested Robert Ramnarine on Thursday morning. He was charged with three counts of using non-public data on companies that were considered by his employer to buy stock trades from.
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Federal authorities said that in all the cases, Ramnarine had the power to use inside knowledge and take advantage of the events that usually happens when a big company plans to overtake a smaller one. The stocks of the smaller company generally shoot up.
Ramnarine had the fear of being caught even when he was making the trades. As per a federal complaint, Ramnarine did a search on the internet for the probable options that can trace the purchaser. This occurred just ahead of making a number of trades in November, 2011.
In an application to make online trades in 2010, Ramnarine supposedly told a retail brokerage that he was working with Merck & Co., instead of Bristol-Myers.
Ramnarine made an appearance in the Newark federal court on Thursday afternoon in order to known about the charges and his rights. He refused to comment through an attorney appointed by the court.
Madeline Cox Arleo, US Magistrate Judge has told Ramnarine that he may not be able eligible for a public defender for fighting through this case. He would have to hire an attorney. His bail has been set at $250,000.
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Gurbir Grewal, Assistant US Attorney has refused to comment on what has tipped prosecutors to the supposedly illegal trades. However, he did say that the Securities and Exchange Commission has also filed charges against Robert Ramnarine.
Ramnarine had been with Bristol-Myers since 1997. The company has stated in an email that it has put Ramnarine on administrative leave. It has also warned its other employees against insider trading.
Shares of BMY were down 9.50% on Thursday and now trading higher by about 1%.