Cheng Yi Liang, FDA chemist in court on insider trading charges
WASHINGTON (AP) - A chemist with the Food and Drug Administration accused with his son in an insider trading scheme is scheduled to appear in federal court to answer to the charges.
Cheng Yi Liang is scheduled to appear Tuesday in federal court in Greenbelt, Md. for a hearing. Prosecutors have filed a court document in the case indicating a plea agreement had been reached. If he pleads guilty, Liang faces up to 20 years in prison and a $5 million fine for insider trading and five years in prison and an additional fine for making a false statement.
Liang was charged in March with his son Andrew Liang. Prosecutors said they used confidential FDA information to buy and trade the stocks of drug companies who had pending applications for products.