A Massachusetts police chief charged with insider trading that allegedly netted a group of men more than $2.2 million in illegal profits will resign.
Dighton Police Chief Shawn Cronin is among five men charged in the insider trading scheme. Dighton Board of Selectmen Chairman Peter D. Caron said in a statement Tuesday that Cronin will resign Saturday.
“On behalf of the community, the Board would like to thank Chief Cronin for his dedicated service to the Police Department, the Town, and its residents,” Caron said.
According to federal investigators, Dighton reserve officer Joseph Dupont, a friend of Cronin, was vice president of Boston-based Alexion Pharmaceuticals, Inc. when he learned that the firm was going to purchase another company, Portola Pharmaceuticals Inc. Dupont allegedly told Cronin about the deal in April 2020, before it was made public.
Alexion’s acquisition of Portola, which is based in South San Francisco, California, was publicly announced on the morning of May 5, 2020. Portola’s stock jumped in value. Cronin and others named in the complaint sold their shares of Portola and options for Portola stock, reaping more than $2.2 million in illegally obtained profits, prosecutors said.
Cronin, who was named police chief last year, allegedly received $72,000 from the scheme. He faces five fraud charges — each of which carries a maximum sentence of anywhere from five to 25 years in prison.
Cronin’s attorney did not respond to a request for comment and a telephone number could not be found for him.