Ramkumar Rayapureddy, Chief Information Officer of pharmaceutical company Viatris Inc, formerly known as Mylan N.V., has been charged with insider trading. The charges follow on the SEC’s previous charges against Mylan’s former Global IT Manager Dayakar R.Mallu.

Between September 2017 and July 2019 Rayapureddy is alleged to have provided material non-public information to Mallu, enabling the latter to generate gains of $8m and avoid losses in excess of $700k. Mallu is then said to have shared “a portion of his illicit trading profits with Rayapureddy”.

The two are alleged to have sought to keep their scheme secret by using a “secure messaging and calling application”. In order to disguise the nature of their relationship Mallu is accused of using cash transactions in India to pay Rayapureddy his share of the illicit profits.

The SEC is seeking a permanent public company officer and director bar for Rayapureddy along with the disgorgement of illicit gains and a civil penalty. Criminal charges against Rayapureddy have also been announced by the DOJ. Mallu has already pleaded guilty and is awaiting sentencing. A conviction is likely to lead to a lengthy prison sentence for Rayapureddy.