East Brunswick Man Confesses to Insider Trading While an Executive at Bristol-Myers Squibb

An East Brunswick man has confessed to trading on inside information regarding a public company Bristol Myers Squibb (BMS) was acquiring when he was an executive with BMS, U.S. Attorney Paul J. Fishman announced on Monday, June 10.

Robert Ramnarine, 46, plead guilty to information charging him with securities fraud, Fishman said. Ramnarine was employed with BMS from 1997 to August of 2012, and he held a number of high-level, executive positions. He told authorities he made more than $300,000 via illegal trading, Fishman said.

According to Fishman, this included director of Pensions and Savings Investments from March 2008 to June 2011; executive director of Pensions and Savings Investments, from June 2011 to July 2012; and assistant treasurer for Capital Markets, from July 2012 to August 2012.

These positions put Ramnarine in a position where he was able to evaluate potential acquisition targets for BMS, and have inside information on publicly traded companies, Fishman said.

Legally, he was banned from disclosing confidential information and material, nonpublic information he obtained due to his position in BMS, or using such information for personal gain or the benefit of others, Fishman said.

However, during May and June 2012, Ramnarine used information he gathered from his position in BMS on Amylin Pharmaceuticals Inc. to trade in stock options for a lucrative benefit prior to the announcement of BMS’ acquisition of Amylin, Fishman said.

Ramnarine told authorities he made $311,361 in illicit gains by trading in stock options for Amylin, ZymoGenentics Inc. and Pharmasset Inc. BMS submitted a bid for Pharmasset in a confidential auction process, but Gilead Sciences ultimately acquired that company.

He faces up to 20 years in prison and a fine of $5 million. He is scheduled to be sentenced on Sept. 26.

Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark for the investigation resulting in Rmanarine's guilty plea. He also thanked the U.S. Securities and Exchange Commission's Market Abuse Unit and Philadelphia Regional Office, under the direction of Daniel M. Hawke, for its assistance, as well as Brisol-Myers Squibb for its cooperation.

The case was executed in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force.