John Lazorchak was director of financial reporting at Celgene Corp. and Mark Cupo held a similar position at Sanofi-Aventis.
The U.S. attorney’s office in New Jersey says that between 2007 and 2012, Lazorchak and Cupo passed privileged information on their companies’ merger and acquisition plans, financial results and regulatory applications to others who would make stock trades.
The scheme allegedly reaped $1.4 million.
Lazorchak, Cupo and the others are charged with conspiracy and multiple counts of securities fraud. Each securities fraud count carries a 20-year maximum prison sentence.
They were scheduled to appear in federal court in Newark on Monday afternoon. Their attorneys were in court and unavailable for comment.