A former US Food and Drug Administration official who was accused of insider trading has agreed to a settlement with federal authorities and will have fork over the profits he made. Gordon Johnston, 64, must also pay a civil penalty, although the amounts have not yet been determined.
The deal, which was disclosed in a judgment filed in federal court on Monday, comes five months after Johnston pleaded guilty to securities fraud and three other crimes as part of a scheme to provide information to a high-profile hedge fund about upcoming agency approvals of generic drugs.
Johnston, who once worked as deputy director of the FDA’s Office of Generic Drugs from 1994 to 1999 and later worked as an industry consultant, was accused of insider trading by the US Securities and Exchange Commission. The agency maintained that Johnston was paid hundreds of thousands of dollars for tipping off clients about the status of generic drug applications at the FDA.
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Hey Gordo, if they send you to Hotel Graybar at Three Rivers, Uncle Marvin (Federal Prisoner #27472-037) says make sure they give you some good fitting shoes. If you wind up at Buttner, say hi to Uncle Bernie.
https://www.washingtonpost.com/archive/politics/1992/04/03/the-bungled-punishment-of-prisoner-seife/0cf1c817-d4c6-4122-a9ea-62bdcb93742a/