Illinois Woman Traded Inside Info From Hubby’s Company, Sent To Prison

Denise Grevas, 60, of Evanston pleaded guilty to securities fraud last year and on March 29 was sentenced to one year and one day in federal prison, and fined $100,000, by U.S. District Judge Harry Leinenweber.

"To be clear, the government disagrees with defendant's contention that this is an "atypical" insider trading case," according to a sentencing memorandum read in court on March 29 by federal prosecutors. "This case carries the same hallmarks of all insider trading cases: defendant misappropriated material nonpublic information to personally profit. It is a crime driven by greed."

In August and September of 2019, Grevas, made $286,960 in illegal profits from the purchase and sale of securities in Washington state-based Alder BioPharmaceuticals, which was a target for acquisition and later acquired by overseas-based Lundbeck A/S pharmaceutical company - which has an office in Deerfield, according to federal court documents.

According to the criminal complaint filed in court, Grevas's husband was employed with Lundbeck A/S pharmaceutical and Grevas learned "material, non-public information about the planned tender offer during a telephone call with her spouse, who was a member of Lundbeck's due diligence team for the Alder tender offer, in August 2019."

After the call, and unbeknownst to her husband, Grevas purchased shares of Alder stock in five brokerage accounts under her control, trading nearly every trading day until Lundbeck's announcement, the criminal complaint states.

According to a U.S. Securities and Exchange Commission complaint, after Lundbeck announced the acquisition publicly on September 16, 2019, Alder's share price increased and Grevas obtained gains of $286,960.

Grevas's spouse has not been charged with any crime in this incident.

Grevas, who prosecutors said could have been sentenced up to 20 years in prison, could not be reached for comment.

Federal prosecutors said a sentence that didn't include prison time "would send the wrong message: that insider trading is a victimless crime that does not carry with it meaningful punishment," according to the sentencing memorandum.

"Insider trading violates the integrity of the stock market," prosecutors said in the memorandum. "It leads to widespread public cynicism that the markets are rigged in favor of those in the know. Insider trading must be met with a serious repercussion."

Brian L. Cox is a freelancer.