Emory University cardiology professor Bobby Khan already has lots of money, but he couldn’t pass up this opportunity to make tons more:
… Khan acquired material nonpublic information regarding the acquisition of Sciele Pharma, Inc. (“Sciele”) by Japanese pharmaceutical company Shionogi & Co., Ltd. (“Shionogi”) from a long time business associate and friend, who was then an officer of Sciele. Following his receipt of this information, Khan opened an online brokerage account, his first since 2003. Khan then transferred approximately one-third of his then-liquid net worth into that account and purchased a combined total of 4,000 shares of Sciele stock, days before Shionogi’s public announcement of its tender offer for Sciele shares on Labor Day, September 1, 2008. Following the tender offer announcement, Khan sold all of his Sciele shares in October 2008, realizing substantial profits and returns in less than two months.
The SEC has charged him with insider trading.