A former corporate executive who was charged with insider trading based on looming negative news about his employer — including his own layoff — has resolved regulatory allegations against him.
In parallel criminal and regulatory proceedings, Paul Jorgensen, the former chief revenue officer of medical technology company Doximity Inc., was charged with insider trading. It’s alleged that in 2022, Jorgensen dumped 61,162 shares of Doximity ahead of a quarterly earnings call, knowing that it would report lower-than-expected sales.
It was also alleged that, in 2023, he traded put options on the stock with inside knowledge of additional weak results and planned layoffs, including his own.
In May, Jorgensen was sentenced to 26 months in prison, followed by 24 months of supervised release, and ordered to forfeit US$2.5 million, after pleading guilty to insider trading.
Now, a final consent judgement against Jorgensen has been entered in the U.S. district court for the Southern District of New York (SDNY) resolving the U.S. Securities and Exchange Commission’s (SEC) charges against him.
That order permanently bans him from serving as an officer or director of a public company, and requires him to pay over US$3 million in disgorgement.
The court offset the criminal sanction against the regulatory order, leaving Jorgensen to pay US$490,077 to the SEC.