Dighton Police Chief Shawn Cronin, reserve officer charged with insider trading
DIGHTON - Dighton Police Chief Shawn Cronin and reserve officer Joseph Dupont are among five people charged in an insider trading scheme that allegedly made more than $2.2 million in illegal profits.
Federal prosecutors say Dupont, 44, of Rehoboth, was a vice president at Alexion Pharmaceuticals, Inc. in January 2020 when he was informed of the upcoming acquisition of Portola Pharmaceuticals, Inc.
Before the acquisition was publicly announced, Dupont allegedly shared that information with Cronin, 43, of Dighton, who is his childhood friend and was a sergeant in the police department at the time.
Based on the information provided by Dupont, Cronin purchased shares of Portola stock as well as out-of-the-money call options for Portola stock, according to the US Attorney for the Southern District of New York. Cronin then allegedly shared that information with two other childhood friends, who were also charged.
After Alexion's acquisition of Portola was publicly announced in May 2020, Cronin and his friends sold their shares and call options, "reaping millions of dollars of illegally obtained trading profits," according to prosecutors.
Dupont and Cronin surrendered to authorities on Thursday. They face several charges including securities fraud under Title 18, which carries a maximum sentence of 25 years in prison.
Also facing charges in the scheme are Slava Kaplan, 45, of Hopewell Junction, NY and Paul Feldman, 48, of Poughquag, NY. Jarrett Mendoza was also charged, and pled guilty following a cooperation agreement.
The Dighton Board of Selectmen voted Thursday night to place Chief Cronin on leave. Reserve officer Joseph Dupont has been suspended.