(Bloomberg) — A pharmaceutical scientist was charged with making $617,000 in illegal profits from secret information he obtained from his domestic partner about drugstore chain CVS Health Corp.’s plans. to purchase Oak Street Health Inc., of which she was one. senior manager.

Carlos Sacanell, 58, was charged with insider trading and lying to federal investigators in an indictment unsealed in federal court in Philadelphia. Her domestic partner, who was not identified, was described as being on the executive committee of Oak Street, a Chicago-based primary care provider.

Sacanell pleaded not guilty at a court hearing Thursday, according to a spokeswoman for Philadelphia-based U.S. Attorney Jacqueline Romero. He was released on bail. The identity of his lawyer could not be determined.

Sacanell was a senior scientist at a manufacturer of non-prescription health products, according to the U.S. Securities and Exchange Commission, which also sued Sacanell in Philadelphia on Thursday. He shared a home with the Oak Street executive in Swarthmore, Pennsylvania, from 2010 until earlier this year.

Prosecutors said Sacanell was informed of the proposed acquisition by his domestic partner, who told him the information was “confidential and could not be shared.”

CVS agreed in February 2023 to buy Oak Street in a $10.6 billion deal, which was part of the Woonsocket, Rhode Island-based pharmacy chain’s transition to direct care to patients.

Just one day before the deal was announced, on February 8, 2023, Sacanell, who had not traded on Oak Street for the previous two years, would have been the firm’s largest options trader in the market . As of the end of February 3, Sacanell held 26,680 shares of Oak Street and 1,313 call options, with an expiration date of February 17.

Later, when questioned by the Federal Bureau of Investigation, Sacanell lied, saying he had not obtained advance information about CVS’ plan to buy Oak Street, according to prosecutors.

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