Shawn Cronin to resign as Dighton police chief amid insider trading scheme charges [masslive.com]

The Dighton police chief has told the Board of Selection he plans to resigned after he was charged in connection with an insider trading scheme, according to the Dighton Board of Selectmen.

Shawn Cronin’s last day as police chief is Saturday, Sept. 30, according to the selectmen.

Cronin, 43, was charged with three counts of securities fraud under Title 15, three counts of tender offer fraud, one count of securities fraud under Title 18, and a conspiracy charge, according to the U.S. Attorney’s Office in the Southern District of New York. If convicted, Cronin could face a maximum of 150 years in prison.

He was one of four police officers suspended by the Peace Officer Standards and Training Commission, or POST Commission, in August.

The district attorney’s office claims a childhood friend told Cronin about Alexion Pharmaceuticals, Inc.’s upcoming acquisition of Portola Pharmaceuticals, Inc. However, that information was not public. His childhood friend, Joseph Dupont, was Alexion’s vice president.

Cronin then purchased shares of Portola stock and out-of-the-money call options for Portola stock, officials said. He also told this information to another childhood friend, Jarett Mendoza.

Alexion’s acquisition of Portola was publicly announced May 5, 2020, and “Portola’s stock increased significantly in value,” officials said.

Cronin sold his shares of Portola and call options for Portola stock, “reaping millions of dollars of illegally obtained trading profits.” Officials claim the police chief and two others made more than $2.2 million in the illegal scheme.

In 2020, Cronin was a sergeant but has since become police chief.

The Dighton Board of Selectmen had voted unanimously to place Cronin on administrative leave in June, a statement read.

Administrative Sergeant George Nichols was put as acting chief of police. Nichols then suspended Dupont, who was a reserve officer.

On Monday, the board thanked the officer for his service.

“On behalf of the community, the Board would like to thank Chief Cronin for his dedicated service to the Police Department, the Town, and its residents,” a statement read.

Cronin and Dupont appeared in federal court in Boston in June, the Boston Globe reported. Cronin was released on a $250,000 bond, and Dupont was released on a $200,000 bond, the newspaper reported.

Mendoza pled guilty pursuant to a cooperation agreement, according to officials.

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