Dighton

Dighton police chief on leave, officer suspended as they face insider trading charges

Dighton Police Chief Shawn Cronin and reserve officer Joseph Dupont are among four people charged federally in an alleged 2020 insider trading scheme

NBC Universal, Inc.

Federal prosecutors have charged Dighton’s police chief in an insider trading case from 2020.

The chief of police in Dighton, Massachusetts, is on administrative leave, and a reserve officer has been suspended following an emergency Board of Selectmen's meeting Thursday evening as they face federal insider trading charges.

Town officials confirmed the board unanimously voted to put Dighton Police Chief Shawn P. Cronin on leave. Reserve officer Joseph Dupont was suspended by newly-named acting Chief George Nichols.

WATCH ANYTIME FOR FREE

icon

Stream NBC10 Boston news for free, 24/7, wherever you are.

Both are facing federal charges tied to an alleged 2020 insider trading scheme.

According to the U.S. Attorney's office, Cronin and Dupont, who were described as childhood friends, and two others, used Dupont's position as a vice president at Alexion Pharmaceuticals to make illegal trades.

Prosecutors allege that Dupont provided information on an upcoming acquisition of another company, Portola Pharmaceuticals, Inc. to Cronin before the information was public.

Cronin, prosecutors say, then bought Portola stock and out-of-the-money call options for Portola stock. Cronin is also accused of sharing the information with two other friends, identified as Slava Kaplan and Paul Feldman, who also made purchases.

It is alleged that Cronin, Kaplan and Feldman made more than $2.2 million in illegal profits.

Cronin, 43, who lives in Dighton, turned himself in and was charged with three counts of securities fraud under Title 15 and three counts of tender offer fraud, one count of securities fraud under Title 18, and one count of conspiracy to commit securities fraud and tender offer fraud.

Dupont, 44, who lives in Rehoboth, turned himself in and was charged with one count of Title 15 securities fraud and one count of tender offer fraud, and one count of securities fraud under Title 18.

Kaplan, of Hopewell Junction, New York, was arrested Thursday and charged with three counts of securities fraud under Title 15 and three counts of tender offer fraud, one count of securities fraud under Title 18, and one count of conspiracy to commit securities fraud and tender offer fraud.

Feldman, 48, of Poughquag, New York, was arrested Thursday and charged with six counts of securities fraud under Title 15 and six counts of tender offer fraud, one count of securities fraud under Title 18, and one count of conspiracy to commit securities fraud and tender offer fraud.

Town officials declined to comment on the details of the emergency meeting or the vote, saying it was a personnel matter.

NBC10 Boston and NBC affiliate WJAR have reached out to Cronin for comment, but have not yet heard back.

This is a developing story. Check back for updates.

Contact Us