Ex-Pharma Executive Charged in $38 Million Insider Trading Scheme

Dale Chappell, former Chief Scientific Officer of Humanigen, allegedly exploited nonpublic FDA information to avoid stock losses.

Dale Chappell, 54, was arrested in Switzerland on December 20 and faces extradition to New Jersey for trial on insider trading charges.
Prosecutors allege Chappell sold millions of Humanigen shares in 2021, avoiding over $38 million in losses by using nonpublic information about an FDA decision.
The case centers on Humanigen's COVID-19 drug Lenzilumab, which failed to secure emergency-use authorization from the FDA, leading to a 50% stock value drop.
Chappell is accused of misusing Rule 10b5-1 trading plans, which are intended to allow lawful stock sales by corporate insiders under certain conditions.
If convicted, Chappell faces up to 25 years in prison for securities fraud and an additional 20 years for each insider trading charge.