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DEERFIELD, Ill. - A Deerfield man is accused of using insider information obtained from his spouse to purchase options in a biotech company’s stock before it was acquired by a large pharmaceutical company, prosecutors said Wednesday.
Brian Rubin, 51, is charged with one count of securities fraud.
According to prosecutors, Rubin made $90,450 in illegal profits from the purchase and sale of stock options in the Colorado-based biotech company that employed his wife.
Without his wife knowing, Rubin allegedly used material, non-public information obtained from his wife about the company's successful development of certain products and its expected acquisition by the New York-based pharmaceutical company to purchase the options ahead of a public announcement of the acquisition in June 2019.
The charges state the biotech company's stock price increased after the announcement and Rubin exercised the options for the profit.
Rubin’s wife learned the information through her position as an account director for the biotech company’s Midwest operations, prosecutors said.
The securities fraud charge is punishable by up to 20 years in federal prison.