Washington: Indian-American Information Technology Executive has pleaded guilty of conspiracy of securities fraud and helps in preparation for false tax returns.
Dayakar Mallu, 51, is scheduled to be scheduled to be sentenced to January 24.
He faced a maximum sentence of 25 years in prison for conspiracy and three years in prison for tax violations.
According to court documents and its acceptance in court, between 2017 and 2019 Mallu conspiring with others to trade in Mylan, a public company registered by Nasdaq, before the announcement of the corporation regarding drug approval, financial income, and merger.
Mallu, who is the Vice President of the Mylan Global Operations Information Technology, and the unnamed co-conspirator, a Mylan executive, conspiraces to give him material, non-public information before the company’s public announcement.
He then placed trade in company securities and shared the benefits of trading with co-conspirators through cash transactions in India.
The trade produces more than USD 8 million in unrealized profits and losses avoided.
Mallu finally realized the profits and losses that were avoided by more than USD 4.2 million from the trafficking of the inner person, the Ministry of Justice said.
He admitted in court, that he sent false information to the tax preparation relating to the Opel Systems LLC, the company he had and controlled.
In particular, the Mallu made misunderstanding the preparation that Opel had paid USD 1.3 million to a contractor when, in fact, he had caused Opel to transfer the funds to his securities brokerage account.
Mallu’s false statement resulted in the preparation for the return of the 2015 False company for Opel, the Ministry of Justice said.
Ex-IT Indian-American executives are guilty of trafficking insiders
