Originally published February 15 2006
Biogen exec accused of insider trading reaches settlement with SEC
by Mike Adams, the Health Ranger, NaturalNews Editor
Thomas J. Bucknum, former executive at Biogen Idec Inc., has agreed to a $3 million settlement with the Securities and Exchange Commission as a penalty for his insider trading.
The settlement announced Thursday by the Securities and Exchange Commission requires Thomas J. Bucknum to give up $1.9 million in profit plus pay a penalty of $969,000 and $102,000 in interest.
Bucknum also is barred from serving as a director or officer of a publicly traded company for five years.
The sudden move came amid a regulatory inquiry into his sale of 89,700 shares of Biogen Idec stock the same day the company says it learned of patient illnesses that led to the withdrawal of its multiple sclerosis drug Tysabri from the market.
The 59-year-old Bucknum did not admit wrongdoing under the settlement, which is subject to approval from a U.S. District Court judge in Boston.
The SEC complaint alleged Bucknum instructed his broker's associate at 1:30 p.m. on Feb. 18 to proceed with a plan Bucknum had discussed with the broker that morning to sell the shares.
The agency said the order to sell came just after Bucknum attended a noon meeting with other executives, at which they learned about the patient illnesses.
The drug was withdrawn 10 days later, which sent the company's shares plummeting 42 percent that day.
The SEC alleges Bucknum told his broker in the morning he wanted to excercise options to buy the Biogen stock and then sell those shares, and the broker understood from the conversation that Bucknum wanted to sell the shares at a price of $68 apiece or better.
In the second conversation with the associate broker -- after the meeting where the illnesses were discussed -- Bucknum instructed the associate to proceed with the sale at the market price, which was then around $67 a share, the SEC said.
Bucknum started at Biogen in 1996 as chief corporate counsel, and was appointed general counsel in 1999.
Last April, the company said in a regulatory filing that the SEC was formally investigating possible securities laws violations related to Tysabri's withdrawal.
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