Juan Roman
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 25762 / June 30, 2023
Securities and Exchange Commission v. Juan Roman, No. 1:23-cv-11470 (D. Mass. filed June 30, 2023)
SEC Charges Former Pharma Employee with Insider Trading
The Securities and Exchange Commission today charged Juan Roman with insider trading in advance of public announcements concerning two drugs under development at Acceleron Pharma Inc. At the time of the alleged trading, in 2019 and 2020, Acceleron was a publicly-traded Massachusetts-based biopharmaceutical company, and Mr. Roman was its Senior Director of Market Access. Roman, who was responsible for planning the marketing and sale of Acceleron’s drugs once they achieved approval from the U.S. Food and Drug Administration (FDA), has agreed to settle the charges and pay more than $200,000.
According to the SEC's complaint, filed in federal court in Boston, Roman traded Acceleron securities based upon material nonpublic information that he had learned about the company achieving key milestones concerning two different drug candidates. As alleged in the complaint, on December 6, 2019, Roman traded Acceleron stock and options during a securities trading blackout window and in advance of positive news regarding the company’s application to the FDA for approval to market and sell its anemia drug Reblozyl for a particular use and generated profits of $1,637. Just a month later, on January 23 and 24, 2020, Roman allegedly traded Acceleron options in advance of the company’s announcement of positive clinical trial results for Sotatercept, a drug being developed to treat pulmonary arterial hypertension. The SEC contends that Roman placed these January 2020 trades during another securities trading blackout window and generated profits of $96,115.
Without admitting or denying the SEC's allegations, Roman has consented to the entry of a final judgment that permanently enjoins him from violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder; orders him to pay disgorgement of $97,752, representing his total trading profits, $15,224.22 in prejudgment interest, and a $97,752 civil penalty; and bars him from serving as an officer or director of a public company for five years. The settlement is subject to court approval.
The SEC's investigation was conducted by Andrew Palid and Michele T. Perillo of the Market Abuse Unit within the Boston Regional Office (BRO) and by Eric Giroux and Chip Harper of the BRO. The SEC appreciates the assistance of the Financial Industry Regulatory Authority.