Jul 26, 2014
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Insider Trading Scheme Gets Morris Plains Man 9 Months in Prison

Michael Castelli was part of a ring of area men who illegally traded stock for five years.

Insider Trading Scheme Gets Morris Plains Man 9 Months in Prison

A Morris Plains man was sentenced to nine months in prison Wednesday for his role in an insider trading scheme that lasted five years, U.S. Attorney Paul Fishman announced. 

Michael Castelli, 50, previously pleaded guilty to two counts of conspiracy to commit securities fraud and five counts of securities fraud. 

Castelli, along with Lawrence Grum, 50, of Livingston – who was sentenced Wednesday to one year and one day in prison – Mark Cupo, also of Morris Plains, John Lazorchak, of Long Valley, and Mark Foldy, also of Morris Plains were all involved in the insider trading scheme from 2007 to 2012.

Castelli regularly received from Lazorchak through Cupo non-public information about Celgene Corporation’s anticipated corporate acquisitions, numerous quarterly earnings results, and regulatory news with the understanding that Grum and Castelli would trade based on the inside information and share their profits, Fishman said. 

All tolled the years-long trading scheme netted $1,483,749, according to Fishman when charges were brought against the group of men. Grum and Castelli are the only members of the group who have received sentencing. 

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