Sam Waksal, the disgraced founder of
, will pay $800,000 to settle some of the
Securities and Exchange Commission's
civil case against him. And, in the scandal's latest twist, the agency alleges Waksal used a Swiss bank account to play downside in the company's shares, using put options while in possession of nonpublic information.
The fines are separate from the criminal charges Waksal recently pleaded guilty to and on which he is awaiting sentencing.
The SEC civil penalty, which also bars Waksal from acting as an officer or director of a public company, covers Waksal's unsuccessful efforts to unload his own ImClone shares after learning the Food and Drug Administration would reject a marketing application for the company's cancer drug candidate, Erbitux. It also covers allegations he tipped off his daughter to the decision.
In a new development, the SEC's press release says Waksal bought 210 put options on ImClone stock during the period before the FDA's decision was made public.
"If approved by the court, the partial final judgment will resolve many of the insider trading charges alleged in the commission's complaint, including new charges that Waksal unlawfully bought ImClone put options through a Swiss account in December 2001," the agency said.
Earlier this month, Waksal pleaded guilty to evading taxes on about $15 million worth of Abstract Expressionist paintings he purchased. Waksal already faces up to 65 years in prison for the six counts to which he already pleaded guilty, including securities fraud and perjury.