Case library · Wall Street
The Warning Letter
United States v. Waksal (2002)
Charge: Securities fraud, bank fraud, obstruction of justice and perjuryCourt: U.S. District Court, S.D.N.Y.State: New YorkDocket: Wall Street
The facts
The accused ran a medical research company. He learned that the drug regulator would refuse to review the company's main cancer drug. Before the news went public two days later, he told two family members to sell their shares. They avoided about $2.5 million in losses. He also tried to have his own shares sold. Separately, he was charged with forging a company lawyer's signature to get a loan, having records destroyed, and lying under oath to investigators.
You have the facts the court had. Guilty or not guilty? Call it in the game with your friends, then see what the court actually decided. Wrong call, you drink.
Citation: United States v. Waksal, S.D.N.Y.
Read more at justice.gov. The source reveals the outcome.