A Minneapolis man, formerly a high-ranking executive at Mazor Robotics, was handed an 18-month prison sentence for his role in an insider trading conspiracy that exploited classified information about a multi-billion dollar acquisition. The scheme, which profited from the sale of a medical device company, has led to significant legal repercussions for those involved.
According to the U.S. Attorney's Office, District of Minnesota, 69-year-old Doron "Ron" Tavlin, and his accomplice, 58-year-old Afshin "Alex" Farahan of Los Angeles, started their illicit activities back in January 2018, which lasted until least August 2020. Using nonpublic information about Medtronic, Inc.'s forthcoming takeover of Mazor Robotics—an Israeli firm specializing in medical robotics—Tavlin tipped Farahan to purchase stocks that would surge in value upon the deal's announcement. Following the tip, Farahan quickly bought over $1 million in Mazor shares, which he liquidated for a profit exceeding $246,000 after news of the acquisition went public.
The details of this insider trading conspiracy, which was rooted in the sanctum of corporate negotiations, came to light during their trial. In a statement made by the U.S. Attorney's Office, District of Minnesota, evidence showed that Tavlin and Farahan had brokered a deal where Tavlin would provide privileged information in exchange for monetary rewards.
Following a nine-day trial and weighty deliberations, Tavlin was convicted on February 16, of one count of conspiracy to commit insider trading, and ten counts of securities fraud and abetting securities fraud, as per the U.S. Attorney's Office, District of Minnesota. Judge Donovan W. Frank was credited for passing the sentence that included, in addition to prison time, a mandate for 320 hours of community service and two years of supervised release. Farahan, for his part in the conspiracy, entered a guilty plea on August 4, 2022. His sentencing will be determined at a future hearing.