Insider Trading Scheme Gets Livingston Man 1 Year in Prison

A Livingston man was sentenced to one year and one day in prison Wednesday for his role in an insider trading scheme that lasted five years, U.S. Attorney Paul Fishman announced. 

Lawrence Grum, 50, previously pleaded guilty to two counts of conspiracy to commit securities fraud and four counts of securities fraud. 

Grum, along with Michael Castelli, 50, of Morris Plains – who was sentenced Wednesday to nine months 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.

Grum 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.