DIRTY MONEY

Massachusetts Police Chief Stepping Down After Insider Trading Scandal

Shawn Cronin and three friends allegedly made $2.3 million on the day the acquisition deal went public.

A Massachusetts police chief charged with insider trading in June will resign from his position. Dighton Police Chief Shawn Cronin received confidential information about a merger between two pharmaceutical companies and conducted illegal trading, according to documents from the U.S. Securities and Exchange Commission. Cronin’s friend Joseph Dupont was a vice president at Alexion Pharmaceuticals Inc. and helped manage its acquisition of Portola Pharmaceuticals Inc. starting in 2020. Dupont allegedly told Cronin about the deal months before it was publicly disclosed in May and informed him when to buy into the Portola stock. According to court documents obtained by Boston 25 News, Cronin also gave a heads up to another friend, Paul Feldman, who then allegedly told his co-workers and relatives. Cronin, Feldman, and two other friends allegedly made more than $2.3 million on the day the acquisition was announced. Cronin was charged with three counts of securities and tender offer fraud and faces a maximum sentence of 20 years in prison on each charge.