EAST BRUNSWICK, NJ — A man from East Brunswick has been arrested and indicted on federal insider trading charges, according to authorities in Massachusetts.
Hong Wang, 59, was arrested at his East Brunswick home on Wednesday morning and is expected to appear in federal court in Boston at a later date.
According to the indictment, Wang worked as a biostatistician and consultant for a Massachusetts-based pharmaceutical company, identified in court documents as Company A. Prosecutors allege that in 2023 Wang obtained material non-public information related to the company’s plans to announce positive test results for one of its cancer-treatment drugs.
Authorities say the announcement was scheduled for December 2023. In the weeks leading up to that announcement, Wang allegedly purchased more than 150,000 shares of Company A stock over a 22-day period. The purchases were made through multiple brokerage accounts under his control.
After the company publicly released the positive test results, Wang sold approximately 20,000 shares while retaining the remainder. Prosecutors allege that Wang earned more than $450,000 in profits by trading on confidential information.
The indictment states that Wang violated his fiduciary duties to the company and has been charged with three counts of securities fraud. Each count carries a potential sentence of up to 20 years in prison, up to three years of supervised release, and fines that could total up to $5 million.
In addition to the criminal charges, the U.S. Securities and Exchange Commission has filed a separate civil complaint alleging violations of federal securities laws.
The case remains pending.
