Former IT executive pleads guilty to insider trading

A former IT executive is facing a maximum 28-year sentence in prison after pleading guilty to insider trading. The executive, 51-year-old Florida resident Dayakar Mallu, pleaded guilty to insider trading while working for Mylan N.V. (a NASDAQ publicly traded pharmaceuticals company). The guilty plea occurred in a Pennsylvania courtroom (Western District), and in that plea, Mallu admitted that between the years 2017 and 2019 he, along with co-conspirators, traded securities of Mylan N.V. before an upcoming $12 billion merger with drug giant Pfizer.

The Department of Justice describes the full extent of the scheme in the following press release excerpt:

Mallu… and an unnamed co-conspirator… conspired to provide Mallu with material, non-public information in advance of the company’s public announcements. Mallu then placed trades in the company’s securities and shared trading profits with his co-conspirator through cash transactions in India. Mallu’s trading resulted in more than $8 million in unrealized profits and losses avoided; he ultimately realized net profits and losses avoided of more than $4.2 million from his insider trading.


According to court documents and his admissions in court, Mallu also admitted that he sent false information to his tax preparer relating to Opel Systems LLC, a company that he owned and controlled. Specifically, Mallu falsely told the preparer that Opel had paid $1.3 million to a contractor when, in fact, Mallu had caused Opel to transfer those funds to his personal securities brokerage account. Mallu’s false statement resulted in the preparation of a false 2015 corporate return for Opel.

As stated previously, the maximum penalty for this conspiracy offense is a quarter-century in prison, with an additional three years for the tax law violation. The case is currently being investigated by FBI-WFO and IRS-CI.

Sentencing for Dayakar Mallu is scheduled for January 2022.

Featured image: Shutterstock

About The Author

Leave a Comment

Your email address will not be published. Required fields are marked *

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Scroll to Top