Pennsylvania Man Arrested for Insider Trading Charges

A resident of Pennsylvania has been accused of insider trading in connection with CVS Health's acquisition of Oak Street Health, announced to the public in February 2023. Carlos Sacanell, 58, from Willow Grove, is alleged to have executed illegal trades that earned him $617,000 by using confidential information obtained from a roommate who is a senior executive at Oak Street.

Sacanell was arrested today at his residence. In addition to the insider trading charges, he is also accused of lying to the FBI, specifically for denying that he received insider information before the acquisition was publicly announced.

The U.S. Securities and Exchange Commission (SEC) has also filed a civil suit against Sacanell. His legal representative has not made any comments on the matter.

According to authorities, Sacanell's illegal trading activities began immediately after his partner expressed discomfort in a message about possessing sensitive information that could not be shared. Sacanell allegedly advised his partner to act clueless around colleagues.

The transaction in question involved CVS Health acquiring Oak Street Health for $39 per share, which represented a 50% premium over the stock price immediately prior to the announcement of the acquisition. Following the announcement, Oak Street's stock value rose by 36% within two days. CVS valued the acquisition, including debt, at $10.6 billion. Sacanell's partner has not been charged in this case.