Telling the truth about SME life today

10 CEOs turned crooks

Share on facebook
Share on twitter
Share on linkedin
Share on email

5. Samuel Waksal

Company: ImClone

Convicted: 2003

Sam Waksal is the former CEO of ImClone, a biotech firm that announced the creation of a new drug in 1999, set to fight cancer. 

Pharmaceutical company Bristol-Myers purchased $1bn worth of stocks, but soon enough the Food and Drug Administration rejected the drug. 

Waksal then alerted friends and family to quickly sell their stocks before the announcement would go public, including close friend Martha Stewart, the scandal’s most infamous casuality.

Waksal was released from jail in 2009 after serving five years in prison and is currently the CEO and founder of Kadmon Pharmaceuticals.

6. Martin L Grass

Company: Rite-Aid

Convicted: 2004

Martin L Grass, son of drugstore chain Rite-Aid founder Alex Grass, was sentenced in 2004 to eight years in prison for directing an accounting fraud that prompted the company to erase over $1.5bn in reported profit.

Martin Grass became CEO of his father’s company in 1995, but was forced to resign from the post after only four years. 

Grass pleaded guilty and reached a plea agreement to serve at least eight years in prison and pay a $500,000 fine, as well as waive $3m in owed salary. He was released from prison in 2010.

7. Raj Rajaratnam

Company: Galleon Group

Convicted: 2011

Rajaratnam, founder of Galleon Group, a New York based hedge fund management firm, was arrested by the FBI in 2009 and convicted two years later of securities fraud and conspiracy to engage in insider trading in the stock of several publicly traded companies. 

The total profits in the scheme were estimated at over $60m, the largest hedge fund insider trading case in US history. 

According to the CNN, Rajaratnam allegedly received information from a number of different sources, including IBM’s senior executive Robert Moffat; senior executive of McKinsey & Company, Ani Kumar and midlevel Intel Capital executive, Rajiv Goel.

Trending

Topic

Share on facebook
Share on twitter
Share on linkedin
Share on email

Related Stories

Trending

If you enjoyed this article,
why not join our newsletter?

We promise only quality content, tailored to suit what our readers like to see!