• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Advertise
  • Subscribe

MassDevice

The Medical Device Business Journal — Medical Device News & Articles | MassDevice

  • Latest News
  • Technologies
    • Artificial Intelligence (AI)
    • Cardiovascular
    • Orthopedics
    • Neurological
    • Diabetes
    • Surgical Robotics
  • Business & Finance
    • Wall Street Beat
    • Earnings Reports
    • Funding Roundup
    • Mergers & Acquisitions
    • Initial Public Offering (IPO)
    • Legal News
    • Personnel Moves
    • Medtech 100 Stock Index
  • Regulatory & Compliance
    • Food & Drug Administration (FDA)
    • Recalls
    • 510(k)
    • Pre-Market Approval (PMA)
    • MDSAP
    • Clinical Trials
  • Special Content
    • Special Reports
    • In-Depth Coverage
    • DeviceTalks
  • Podcasts
    • MassDevice Fast Five
    • DeviceTalks Weekly
    • OEM Talks
      • AbbottTalks
      • Boston ScientificTalks
      • DeviceTalks AI
      • IntuitiveTalks
      • MedtechWOMEN Talks
      • MedtronicTalks
      • Neuro Innovation Talks
      • Ortho Innovation Talks
      • Structural Heart Talks
      • StrykerTalks
  • Resources
    • About MassDevice
    • DeviceTalks
    • Newsletter Signup
    • Leadership in Medtech
    • Manufacturers & Suppliers Search
    • MedTech100 Index
    • Videos
    • Webinars
    • Whitepapers
    • Voices
Home » Brokers plead guilty to insider trading of Stryker stock

Brokers plead guilty to insider trading of Stryker stock

November 14, 2013 By Brad Perriello

Brokers plead guilty to insider trading of Stryker stock

A pair of brokers pleaded guilty to federal insider trading charges yesterday, admitting that they used tips from a former Stryker (NYSE:SYK) marketing executive to make illicit trades ahead of the medical device company’s 2011 acquisition of Orthovita.

Lawrence Grum and Michael Castelli each admitted to 2 counts of conspiracy to commit securities fraud, federal prosecutors said. Grum also copped to 4 counts of securities fraud and Castelli admitted to 5 counts of securities fraud, according to the office of new Jersey district attorney Paul Fishman.

Grum and Castelli allegedly acted on tips from former Stryker marketing executive Mark Foldy about the impending, $316 million deal for Orthovita in May 2011, according to the feds, who alleged that the scheme generated $1.7 million in illegal profits and kickbacks.

Foldy allegedly plotted with Sanofi (NYSE:SNY) accounting & reporting director Mark Cupo and Celgene (NSDQ:CELG) financial reporting director John Lazorchak, illegally leaking confidential information about their companies to Grum and Castelli, high school friends who conducted the trades.

Foldy, Lazorchak, Cupo and another defendant, Michael Pendolino, pleaded guilty Oct. 7 and are slated to be sentenced Jan. 20, 2014. Grum and Castelli each face a maximum of 5 years in prison and a fine of $250,000 on the conspiracy counts and a maximum of 20 years in prison and a fine of $5 million on the securities fraud counts. They’re expected to be sentenced Feb. 20, 2014.

Filed Under: Legal News, News Well Tagged With: Celgene, Insider Trading, Sanofi-Aventis, Stryker

More recent news

  • Ambu wins FDA clearance for first single-use cysto-nephroscope
  • Tandem Diabetes Care pairs t:slim X2 pump with Abbott FreeStyle Libre 3 Plus in U.S.
  • Ypsomed, CamDiab to integrate Abbott dual glucose-ketone sensor into automated insulin delivery system
  • Johnson & Johnson MedTech launches new Volt plating systems for radius, humerus
  • PharmaSens, SiBionics collab on all-in-one insulin patch pump

Primary Sidebar

“md
EXPAND YOUR KNOWLEDGE AND STAY CONNECTED
Get the latest med device regulatory, business and technology news.

DeviceTalks Weekly

See More >

MEDTECH 100 Stock INDEX

Medtech 100 logo
Market Summary > Current Price
The MedTech 100 is a financial index calculated using the BIG100 companies covered in Medical Design and Outsourcing.
MDO ad

Footer

MASSDEVICE MEDICAL NETWORK

DeviceTalks
Drug Delivery Business News
Medical Design & Outsourcing
Medical Tubing + Extrusion
Drug Discovery & Development
Pharmaceutical Processing World
MedTech 100 Index
R&D World
Medical Design Sourcing

DeviceTalks Webinars, Podcasts, & Discussions

Attend our Monthly Webinars
Listen to our Weekly Podcasts
Join our DeviceTalks Tuesdays Discussion

MASSDEVICE

Subscribe to MassDevice E-Newsletter
Advertise with us
About
Contact us

Copyright © 2025 · WTWH Media LLC and its licensors. All rights reserved.
The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media.

Privacy Policy