Daniel V.T. Catenacci

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 25813 / August 21, 2023

Securities and Exchange Commission v. Daniel V.T. Catenacci, No. 1:21-cv-06718 (N.D. Ill. filed Dec. 17, 2021)

SEC Obtains Final Judgment Against IIIinois Resident for Insider Trading

On August 18, 2023, the U.S. District Court for the Northern District of Illinois entered a final judgment against Daniel V.T. Catenacci for insider trading in the securities of biotechnology company Five Prime Therapeutics, Inc. in advance of the company's November 10, 2020 announcement that it had achieved positive drug trial results for its flagship cancer drug Bemarituzumab.

The SEC's complaint, filed on December 17, 2021, alleges that Catenacci, a Chicago, Illinois based medical doctor, entered into a consulting agreement with Five Prime to serve as a lead clinical investigator for the company's Bemarituzumab drug trial. Through this role, Catenacci allegedly learned material nonpublic information about the positive drug trial results for Bemarituzumab. According to the SEC, shortly after he allegedly learned of the positive results, Catenacci purchased 8,743 shares of Five Prime. After the company publicly announced the positive drug trial results, Five Prime's share price increased over 300%. The next day, Catenacci allegedly sold all of his shares, realizing illicit gains of $134,142.

Without admitting or denying the allegations, Catenacci consented to the entry of a final judgment that permanently enjoins him from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The final judgment also orders Catenacci to pay a $50,000 penalty.

The SEC's investigation was conducted by Madiha M. Zuberi of the San Francisco Regional Office, with assistance from John S. Rymas of the Market Abuse Unit's Analysis and Detection Center. The investigation was supervised by Monique C. Winkler and David Zhou.

• Final Judgment