FAMILY TIES FUEL FRAUD! Cousin's Tip Sparks $9K Insider Trading Spree!

SEC v. Gerard Ryan — U.S. Securities and Exchange Commission Litigation Release No. 26566, dated June 15, 2026.

The SEC charged Gerard Ryan with insider trading in Kadmon Holdings stock. Ryan learned of the FDA's planned approval of Kadmon's drug Rezurock from a family member and then bought shares before the public announcement. He also tipped off a friend who also traded, generating ill-gotten profits for both.

In Plain English

Imagine you hear a secret that a popular toy will be approved for sale next week, making it very popular. You buy a lot of that toy's stock right before everyone else finds out and the price goes up. This is like what Gerard Ryan did. He learned a secret about a medicine's approval from a family member, bought stock in the company, and made money when the news became public. He also told a friend who did the same.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

1. Confidential Information Received On July 14, 2021, the FDA confidentially informed Kadmon Holdings, Inc. that it planned to approve the company's drug Rezurock. This information was shared via email.
2. Information Leaked to Family Member Ryan's cousin, who worked as a Kadmon Immune Hematology Manager and was part of the sales team for Rezurock, learned about the FDA's planned approval on July 14, 2021.
3. Information Shared with Ryan Later on the evening of July 14, 2021, Gerard Ryan learned from his cousin that the FDA intended to approve Rezurock.
4. Ryan Trades on Inside Information Armed with this material non-public information, Ryan began to trade Kadmon securities. On July 15 and July 16, 2021, prior to the public announcement, Ryan purchased approximately 16,480 Kadmon shares.
5. Ryan Tips Off a Friend Ryan also shared the confidential information about the FDA's planned approval with a longtime friend.
6. Friend Trades on Inside Information The friend, acting on the tipped information, also purchased Kadmon stock before the official announcement.
7. Public Announcement of Approval On the afternoon of July 16, 2021, Kadmon Holdings announced that the FDA had approved Rezurock. Following this announcement, Kadmon's stock price closed approximately 20 percent higher than the previous day.
8. Profits Generated As a result of this illicit trading, Ryan generated approximately $9,260 in ill-gotten profits, and his friend earned approximately $1,170 in ill-gotten profits.

The Enforcement Action

On June 12, 2026, the U.S. District Court for the Southern District of New York entered a bifurcated consent judgment against Gerard Ryan for alleged insider trading in Kadmon Holdings, Inc. securities. Ryan consented to a permanent injunction against violating antifraud provisions of the Securities Exchange Act of 1934 and Rule 10b-5. The issue of monetary relief is reserved for court determination. Ryan previously pleaded guilty to securities fraud in a parallel criminal action.

Named in this action: Gerard Ryan.

Original SEC litigation release ↗ · Browse all cases