Federal prosecutors charged a Sepracor Inc. accountant and his father yesterday with engaging in illegal insider trading that netted $55,000.
The Securities and Exchange Commission charged Timothy J. Potter, still a senior accountant with the Marlboro drug maker, and his father, George R. Potter, with securities fraud. Both live in Bedford, N.H.
Meanwhile, the U.S. Attorney for New Hampshire said Timothy Potter had been indicted on charges relating to insider trading and conspiracy. The SEC claims he tipped off his father in October 2000 that Eli Lilly & Co. might terminate a valuable license deal with Sepracor.
George Potter then bought options in a bet that Sepracor shares would fall, the SEC said.
Sepracor publicly announced the termination of the Lilly deal the next day, and George Potter sold the options for a $55,172 profit, the SEC said. The agency said he later gave the money to his son.