Dighton Police Chief Shawn Cronin pleads guilty to insider trading
Michael J. DeCicco
DIGHTON — Disgraced Dighton Police Chief Shawn Cronin on Jan. 23 pleaded guilty to one count of securities fraud in the case that charged him with insider trading violations and cost him his job.
He will be sentenced on that charge, which carries a maximum of 20 years in prison, by U.S. District Judge Gregory H. Woods on May 13, according to a written statement from the U.S. Attorney’s Office for the Southern District of New York.
Cronin’s co-conspirator, a medical doctor named Paul Feldman, 49, of Poughquaq, New York, also pleaded guilty on Jan. 23 and will be sentenced on the same day as Cronin, the written statement said.
“As a law enforcement leader, Cronin was sworn to uphold the law and was trusted to set an example for junior officers. And as a medical doctor, Feldman held a position of trust and respect in our society. Rather than live up to their posts, these men broke the rules to try to make a quick buck,” U.S. Attorney Damian Williams said in the written statement.
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Who is acting police chief?
Cronin was placed on paid administrative leave and Dighton Police Sgt. George Nicholas was appointed acting police chief in July 2023.
What is status of Cronin’s job?
Cronin resigned from the Dighton Police Department in September 2023.
‘A ticket to prison’Dighton Police Chief Shawn Cronin charged with insider trading
When will new chief be appointed?
Dighton Town Administrator Michael Mullen said selectmen have no comment on Cronin’s guilty plea. But he provided an update on the job he resigned from.
The town is reviewing applicants for permanent chief, Mullen said. The deadline for applications was in early January.
Multiple internal applicants
The search is focused on screening candidates within the Dighton Police Department, Mullen said, and multiple internal candidates have applied. He said the town is hoping to have a final choice sometime within the first two weeks of March.
What did Cronin plead guilty to?
In April 2020, Cronin, Feldman and others engaged in an insider trading scheme surrounding the announcement of Alexion Pharmaceutical, Inc.’s acquisition of Portola Pharmaceuticals, Inc., the written statement from the U.S. Attorney’s Office said.
Before that acquisition was publicly announced, Cronin’s childhood friend, a then-vice president at Alexion gave Cronin insider information about the upcoming acquisition, the statement said. In turn, Cronin provided another friend with the insider information, both so that that friend could trade in advance of the acquisition and “so that that friend would assist Cronin in formulating trading strategies to maximize Cronin’s trading profits,” the statement said. The friend Cronin tipped was a doctor who went on to tip his friend and colleague, Feldman, who for his part, “aggressively bought Portola call options.”
After the acquisition was announced, Cronin, Feldman and others sold their securities, “reaping millions of dollars of illegally obtained profits,” the statement said.
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What were the original charges?
Cronin was originally charged with many more than the one charge he pleaded guilty to.
He was charged with three counts of securities fraud under Title 15 and three counts of tender offer fraud, each of which carries a maximum sentence of 20 years in prison; one count of securities fraud under Title 18, which carries a maximum sentence of 25 years in prison; and one count of conspiracy to commit securities fraud and tender offer fraud, which carries a maximum sentence of five years in prison, according to an earlier statement from the U.S. Attorney’s Office.
Dighton reserve officer also charged
Another of Cronin’s alleged co-conspirators was Dighton Police Reserve Officer Joseph Dupont, 44, of Rehoboth, who also lost his job in the wake of the charges.
He faces one count of Title 15 securities fraud and one count of tender offer fraud, each of which carries a maximum sentence of 20 years in prison, and one count of securities fraud under Title 18, which carries a maximum sentence of 25 years in prison.
