The Securities and Exchange Commission (SEC) has charged a group of five physicians with insider trading in the stock of a medical professional liability insurer. According to the SEC allegations, Dr. Apparao Mukkamala received confidential information that American Physicians Capital Inc. (ACAP) was going to be acquired by another insurance company. Dr. Mukkamala then shared that confidential information with the other physicians.
The five physicians bought ACAP stock in the months leading up to the public announcement of the acquisition. As a group, these physicians received over $623,000 in illegal profits through their insider trading in ACAP stock.
The physicians have agreed to pay over $1.9 million to settle the SEC’s securities fraud allegations against them. This combined total includes financial penalties, disgorgement, and prejudgment interest. Dr. Mukkamala also agreed to be barred from serving as an officer or director of any public company. The proposed settlement is subject to court approval.
Waters & Kraus is a national firm with highly skilled lawyers practicing qui tam litigation in four offices, including Dallas, Los Angeles, San Francisco, and Baltimore. Our attorneys have decades of experience successfully representing whistleblowers in a variety of fraud cases. Contact us or call our attorneys at 800.226.9880 to learn more about our practice and how we can assist.