Terren Peizer

Peizer's hometown is Beachwood, Ohio.{{Cite news |last=Lee |first=Patrick |date=July 31, 1994 |title=In the Shadow of the '80s: Yesterday's High Rollers Struggle in a New Era of Sobriety |language=en-US |work=Los Angeles Times |url=https://www.latimes.com/archives/la-xpm-1994-07-31-fi-22082-story.html |access-date=November 26, 2020}} He attended Beachwood High School.{{cite news |last1=Polien Light |first1=Nina |title=An entrepreneur with heart |url=https://www.clevelandjewishnews.com/archives/an-entrepreneur-with-heart/article_3deceb1d-451b-537d-a78c-0a1511d807e0.html |access-date=February 6, 2022 |work=Cleveland Jewish News |date=May 8, 2008}} Peizer graduated with an undergraduate B.S. in Economics from the Wharton School of the University of Pennsylvania.{{Cite web|url=https://archives.upenn.edu/wp-content/uploads/2018/04/commencement-program-1982.pdf|title=University of Pennsylvania Two Hundred and Twenty-Sixth Commencement for the Conferring of Degrees|date=May 17, 1982|publisher=University of Pennsylvania}} He resides in Dorado, Puerto Rico and Santa Monica, California.{{Cite web|url=https://www.sec.gov/Archives/edgar/data/1136174/000162828023030794/otrks-1amendmentno2x082023.htm|title=Amendment No. 2 to Form S-1 Registration Statement under the Securities Act of 1933; Ontrak, Inc.|date=August 28, 2023|website=Securities and Exchange Commission}}

Out of college in 1983, Peizer worked for a few months at Goldman Sachs when he was 21 years old.{{Cite web|url=https://www.ft.com/content/0a74de62-2758-4590-9c1f-6d18aef8f6d4|title=One-time Milken associate now at centre of novel insider trading case; US authorities accuse investor of violating rules on stock sales plans for corporate executives|date=March 20, 2023|work=The Financial Times|last=Indap|first=Sujeet}}{{Cite news |title=Catasys Inc (CATS.OQ) |work=Reuters |url=https://in.reuters.com/finance/stocks/company-officers/CATS.OQ |access-date=November 25, 2020}}{{dead link|date=September 2024|bot=medic}}{{cbignore|bot=medic}} Later that year he worked for a stint at First Boston as a high yield bond salesman.

Michael Milken hired Peizer as a junk bond salesman at Drexel Burnham Lambert in 1985.{{Cite web|url=https://www.tampabay.com/archive/1990/10/20/dow-up-again/|title=Dow Up Again|website=Tampa Bay Times|date= October 20, 1990}} His job was to manage the Drexel account of the president of high-yield mutual fund manager Solomon Asset Management, with whom Drexel had an illegal arrangement that included insider trading and phony tax losses.{{cite web | url=https://books.google.com/books?id=z-gCAAAAMBAJ&dq=Terren+Peizer&pg=PA45 |author=Dennis B. Levine| title=The Insider|work=New York Magazine | date=September 16, 1991 |page=45|via=Google Books}}{{Cite book|url=https://books.google.com/books?id=a9_Z413-J1IC&dq=Terren+Peizer+%22first+boston%22&pg=PA258|title=Den of Thieves|first=James B.|last=Stewart|date=2012|page=258|publisher=Simon and Schuster|isbn=9781439126202|via=Google Books}}{{Cite web|url=https://www.nytimes.com/1990/11/28/business/witness-against-milken-settles-sec-charges.html|title=Witness Against Milken Settles S.E.C. Charges|first=Kurt|last=Eichenwald|date=November 28, 1990|work=The New York Times}}Vise, David A. (September 12, 1989). [https://www.washingtonpost.com/archive/business/1989/09/12/new-charges-against-milken-expected/d86dabac-98f1-4a91-a2a4-628b939860c5/ "New Charges against Milken Expected"], The Washington Post.{{cite book |last=Kornbluth|first=Jesse|title=Highly confident: The Crime and Punishment of Michael Milken|page=213|year=1992|publisher=William Morrow and Co.}} Peizer worked directly under (and at the same desk as) Milken and admired him, sometimes pretending to be him on the phone, and calling him "Dad".{{cite book|url=https://books.google.com/books?id=2xclCwAAQBAJ&q=dancing%20at%20the%20predator's%20ball%20peizer&pg=PA143|title=Hit & Run: How Jon Peters and Peter Guber Took Sony for a Ride in Hollywood|isbn=9781439128046|last1=Griffin|first1=Nancy|last2=Masters|first2=Kim|date= 2016|page=143|publisher=Simon and Schuster|via=Google Books }}

When investigations into Milken's illegal activities began, Peizer, starting in 1988, provided material evidence to prosecutors against Milken and Solomon.[https://www.sechistorical.org/collection/papers/1980/1989_0413_USBoeskySupplemental.pdf "Defendant's Supplemental Memorandum of Law in Support of Motion for Reduction of Sentence Pursuant to Rule 35(b)"], U.S .v. Boesky, United States District Court for the Southern District of New York, April 13, 1989. At Milken's pre-sentencing hearing for securities fraud in 1990, Peizer testified against Milken in exchange for immunity from both criminal prosecution and SEC sanctions.{{Cite news |last=Labaton |first=Stephen |date=December 10, 1988 |title=4th Drexel Employee in Immunity Bargain |language=en-US |work=The New York Times |url=https://www.nytimes.com/1988/12/10/business/4th-drexel-employee-in-immunity-bargain.html |access-date=November 25, 2020 |issn=0362-4331}}{{Cite book|url=https://books.google.com/books?id=gm5QDwAAQBAJ&dq=%22milken%22+%22peizer%22&pg=PA11|title=Banking on Fraud: Drexel, Junk Bonds, and Buyouts|first=Mary|last=Zey|date= 2017|page=11|publisher=Routledge|isbn=9781351314831|via=Google Books}} Milken pled guilty and served nearly two years in prison.{{Cite web|url=https://www.ft.com/content/0a74de62-2758-4590-9c1f-6d18aef8f6d4|title=One-time Milken associate now at centre of novel insider trading case|website=The Financial Times|date=March 20, 2023 |last1=Indap |first1=Sujeet }}

After Drexel, Peizer became a private investor in a series of small companies. In 1989, Peizer purchased the Omaha Racers, a minor league basketball team, but it struggled financially.{{cite news |title=Omaha CBA team sold to Los Angeles banker |url=https://www.newspapers.com/clip/15283269/the-lincoln-star/ |accessdate=August 11, 2020 |work=The Lincoln Star |date=September 7, 1989 |page=18}} He sold the team the following year.{{Cite web|url=https://i80sportsblog.com/cba-basketball-from-the-horses-mouth-steve-idelman-omaha-racers/|title=CBA Basketball From The Horse's Mouth - Steve Idelman On The Omaha Racers|first=Paul|last=Eide|date=September 6, 2020}}

In 1991, he gained control of plastics company UTI Chemicals Inc., which had 26 employees, and became its president for a salary of $100,000; the company had a loss of over three million dollars each of the following two years.Walsh, Elizabeth (2016). [https://books.google.com/books?id=ZbBkDAAAQBAJ&dq=%22peizer%22+%22uti+chemicals%22&pg=PA1800 The Corporate Directory of US Public Companies 1995] p.180 – via Google Books.{{Cite news |last=Michaud |first=Anne |date=April 10, 1991 |title=Drexel Figure Gains Control of UTI Chemicals |language=en-US |work=The Los Angeles Times |url=https://www.latimes.com/archives/la-xpm-1991-04-10-fi-357-story.html |access-date=November 25, 2020}} He stepped down as its chairman in 1994.{{Cite news |date=February 7, 1994 |title=Jim Orefice has been appointed chairman... |language=en-US |work=The Los Angeles Times |url=https://www.latimes.com/archives/la-xpm-1994-02-07-fi-20114-story.html |access-date=November 26, 2020}}

In June 1991, Peizer purchased $3.5 million of convertible debentures from Candies, Inc. (formerly known as Millfeld Trading Co.; a shoe importing and marketing business), and became a director of the company.{{Cite web|url=https://casetext.com/case/food-allied-serv-v-millfeld|title=Food Allied Serv. v. Millfeld, 841 F. Supp. 1386|website=United States District Court, S.D. New York|date=January 5, 1994}}[https://books.google.com/books?id=5Ltd1hu4G4wC&dq=%22terren%22+%22peizer%22+%22millfield%22&pg=PA154 Official Summary of Security Transactions and Holdings Reported to the Securities and Exchange Commission Under the Securities Exchange Act of 1934 and the Public Utility Holding Company Act of 1935], Volume 57, Issues 9-10, p. 154, U.S. Securities and Exchange Commission – via Google Books He had by that time already purchased 135,000 shares of the company's common stock, and when he became a director he received warrants to purchase 1.1 million shares of the company's common stock at $10.00 per share. Peizer divested himself of over 90% of his stock in the company on September 23, 1991, one day before the company publicly acknowledged that it had materially underpaid its customs obligations and faced a $1.6 million liability. In early 1992, the price of the company stock collapsed after the company disclosed that it was being investigated by federal prosecutors for systematic underpayment of its customs duties, and Peizer thereafter resigned as a director.

Peizer purchased an interest of over 50% in Urethane Technologies, a small-cap company which manufactured and sold a bicycle tire that it claimed would not go flat, and named himself Chairman.[https://books.google.com/books?id=ApGZwrQOBf0C&dq=%22Urethane%22+Technologies+%22peizer%22+%22terren%22&pg=PA613 Official Summary of Security Transactions and Holdings Reported to the Securities and Exchange Commission Under the Securities Exchange Act of 1934 and the Public Utility Holding Company Act of 1935], Volume 60, Issue 5, United States Securities and Exchange Commission, 1994 – via Google Books He sold his shares in 1993 at what was reported to be a $6 million profit, and the company never delivered, lost money, and went bankrupt in 1997.{{Cite web|url=http://www.nbcnews.com/health/health-news/unproven-meth-cocaine-remedy-hits-market-flna1C9444547|title=Unproven meth, cocaine 'remedy' hits market|website=NBC News|date=February 5, 2007|last=Huus|first=Kari}}

In 1993, he acquired a 37% share of now-defunct computer parts producer CMS Enhancements. He was elected chairman of the company, and held the position for two years.{{cite web|last=Gomez|first=James M.|url=https://www.latimes.com/archives/la-xpm-1993-12-10-fi-835-story.html|title=CMS Enhancements Names New Top Management Team|newspaper=LA Times|date=December 10, 1993}}

In the mid-1990s, Peizer played a role in now-defunct Towers Financial Corporation. The company was a debt collection agency Ponzi scheme founded by fraudster Steven Hoffenberg, with which Jeffrey Epstein was involved.{{Cite web|url=https://www.nytimes.com/1995/07/20/business/creditors-in-a-big-ponzi-scheme-say-they-ve-been-taken-again.html|title=Creditors in a Big Ponzi Scheme Say They've Been Taken Again|first=Diana B.|last=Henriques|date=July 20, 1995|work=The New York Times}}{{Cite web|url=https://books.google.com/books?id=FQk-AQAAIAAJ&q=%22peizer%22+%22towers+financial%22|title=Broker-dealer Litigation ... Annual Survey|date=March 28, 1999|publisher=American Bar Association, Litigation Section|via=Google Books}}

Peizer purchased an interest in Advanced Promotion Technologies, which manufactured electronic barcode coupon machines for checkout lines. He subsequently sold his shares, and the company then went bankrupt in 1996.

From 1997 to 1999, Peizer was president of Hollis-Eden, a startup pharmaceutical company.{{Cite web|url=https://g.foolcdn.com/dtrouble/1999/dtrouble990611.htm|title=Hollis-Eden Pharmaceuticals (Daily Trouble) |date=June 11, 1999|website=Fool.com|first=Louis|last=Corrigan}} The New York Times covered the company and his involvement in it in an article entitled: "No Sales, but Watch the Stock Soar". By 1998 the company still had no sales or earnings. That year Peizer said: "This is a once in a lifetime opportunity for me. We have something special." Peizer resigned from the company in March 1999 concurrently with the dismissal of its CEO Richard B. Hollis for cause.{{cite news|url=https://www.nytimes.com/1998/02/17/business/market-place-no-sales-but-watch-the-stock-soar.html|title=Market Place; No Sales, but Watch the Stock Soar|newspaper=The New York Times|date=February 17, 1998 |last1=Eaton |first1=Leslie }} By September 1999 the company's stock was at $13.50, 47% lower than its 52-week high.

In 1999, Peizer raised money for and invested in Tera Computer Company, an unprofitable 112-employee manufacturer of supercomputers.[https://www.edn.com/tera-gets-finance-facelift/ "Tera Gets Finance Facelift,"] EDN, July 12, 1999.[https://www.bizjournals.com/seattle/stories/1999/06/21/daily5.html "Tera lands $30M in financing,"] Puget Sound Business Journal, June 22, 1999. The money that was raised allowed Tera to later buy the remains of Cray Research, and Peizer was its chairman and a director from 1999 to 2000.{{Cite web|url=https://labusinessjournal.com/news/buyout-la-financier-reemerges-as-key-player-in/|title=Buyout - L.A. Financier Reemerges as Key Player in Cray Deal|date=March 5, 2000|work=Los Angeles Business Journal}}{{Cite web|url=https://www.forbes.com/forbes/2000/0403/6508060a.html|date=April 3, 2000|title=Megaflop|website=Forbes}}{{Cite web|url=https://www.hpcwire.com/1999/07/02/people-and-positions-tera-elects-new-chairmain-sgi-names-new-sales-mktg-vp-emc-appts-new-vp-global-mktg/|title=People and Positions: Tera Elects New Chairmain. SGI Names New Sales/Mktg VP. EMC Appts New VP, Global Mktg.|first=John|last=Shandor|date=July 2, 1999|website=HPCwire}} He stepped down as chairman in 2000. Tera said the reason was that Peizer would otherwise have been required to obtain a security clearance from the US Department of Defense by the end of 2000 to transfer Cray's classified government business to Tera by then, and Tera did not think that would happen.{{Cite news |date=December 26, 2000 |title=Technology Briefs |language=en-US |work=The Wall Street Journal |url=https://www.wsj.com/articles/SB977801943712445761 |access-date=November 25, 2020 |issn=0099-9660}}

In 2004, Peizer founded Hythiam Inc., a tiny pharmaceutical company, from which in 2006 when he was majority shareholder he received $1.3 million in compensation.{{Cite web|url=http://www.treatmentmagazine.com/component/content/article/7-newswires/99-hythiam-svp-lamacchia-latest-in-long-string-of-company-layoffs.html|title=Hythiam EVP Lamacchia in long string of company layoffs|work= Treatment Magazine|date=November 21, 2019|archive-url=https://web.archive.org/web/20191121131429/http://www.treatmentmagazine.com/component/content/article/7-newswires/99-hythiam-svp-lamacchia-latest-in-long-string-of-company-layoffs.html |archive-date=November 21, 2019 }}{{Cite web|url=https://www.wsj.com/articles/SB113115427427989094|title=Curb Your Cravings For This Stock|first=Bill|last=Alpert|website=The Wall Street Journal|date=November 7, 2005}}{{cite news |last1=Bartholomew |first1=Dana |title=Catasys Thrives on Data Dives |url=https://labusinessjournal.com/news/2018/dec/07/catasys-thrives-data-dives/ |accessdate=August 12, 2020 |work=Los Angeles Business Journal |date=December 7, 2018}} The firm bought the rights to an ineffective addiction treatment, and marketed it.{{Cite news |last=Alpert |first=Bill |title=Curb Your Cravings For This Stock|date=November 7, 2005 |language=en-US |work=Barrons |url=https://www.wsj.com/articles/SB113115427427989094 |access-date=November 26, 2020}} Despite the fact that no placebo-controlled or double-blind study or peer-reviewed publication of its "Prometa" (the marketing name for Gabasync) approach had been undertaken, and although no FDA approval had been obtained, Hythiam advertised the "innovative, medically based treatment" (which could cost $15,000 per patient) and franchised doctors to use Prometa, in exchange for a per-patient fee.{{Cite web|url=https://www.cbsnews.com/news/prescription-for-addiction/|title=Prescription For Addiction|website=CBS News|date=December 7, 2007}} Barrons, in a November 2005 article entitled "Curb Your Cravings For This Stock", wrote "If the venture works out for patients and the investing public, it'll be a rare success for Peizer, who's promoted a series of disappointing small-cap medical or technology stocks ... since his days at Drexel". Peizer said: "Hythiam is my biggest triumph. If it's the only thing I did, then my life would have been a tremendous success." Journalist Scott Pelley said to him in 2007: "Depending on who you talk to, you're either a revolutionary or a snake oil salesman." 60 Minutes, NBC News, and The Dallas Morning News criticized Peizer after the company bypassed clinical studies and government approval when bringing to market Prometa; the addiction drug proved to be completely ineffective.{{Cite web|url=http://washingtonmonthly.com/2012/01/24/the-rise-and-fall-of-a-miracle-cure-for-drug-addiction/|title=The Rise and Fall of a "Miracle Cure" for Drug Addiction|first=Keith|last=Humphreys|date=January 24, 2012|work=Washington Monthly}}{{Cite news |date=December 9, 2007 |title=Prescription For Addiction |work=60 Minutes |publisher=CBS News |url=https://www.cbsnews.com/news/prescription-for-addiction/ |access-date=August 22, 2008 |url-status=live |archive-url=https://web.archive.org/web/20071231045158/http://www.cbsnews.com/stories/2007/12/07/60minutes/main3590535.shtml |archive-date=December 31, 2007}}{{Cite news |last=Ramshaw |first=Emily |date=January 20, 2008 |title=Texas' Prometa program for treating meth addicts draws skeptics |work=Dallas Morning News |url=https://www.dallasnews.com/sharedcontent/dws/dn/latestnews/stories/012108dntexprometa.2c2f801.html |archive-url=https://web.archive.org/web/20101027101333/https://www.dallasnews.com/sharedcontent/dws/dn/latestnews/stories/012108dntexprometa.2c2f801.html |archive-date=October 27, 2010}} Journalist Adam Feuerstein opined: "most of what Peizer says is dubious-sounding hype".Feuerstein, Adam (November 13, 2007). [https://www.thestreet.com/investing/stocks/biotech-notebook-hythiam-shire-genentech-10389850 "Biotech Notebook: Hythiam, Shire, Genentech; Talk is proving cheap at Hythiam,"] TheStreet. In June 2008, Hythiam had generated a net loss each year for 5 straight years, and while its stock had traded at $61.26 a share in 2007, it traded at $0.18 per share three years later (a 99.7% drop).{{Cite web|url=https://www.prisonlegalnews.org/news/2008/jun/15/junk-bonds-to-junk-science-drug-treatment-program-questioned/|title=Junk Bonds to Junk Science? Drug Treatment Program Questioned |website=Prison Legal News|date=June 15, 2008}}{{Cite web|url=https://www.google.com/search?q=Hythiam+stock+price|title=Hythiam stock price|website=Google.com}}{{better source needed|date=February 2025|reason=This links to the current stock price information}}{{Cite web |title=Percentage Calculator |url=https://www.thecalculator.website/percentage-calculator |access-date=April 25, 2024 |website=The Calculator Website |language=en}} According to independent investment research firm Morningstar: "Over the long haul, this company has posted some of its industry's worst returns on assets."

In 2018, Peizer became CEO and chairman of BioVie, a pharmaceutical company of which he was majority shareholder (his ownership was 88% as of June 2021).Halley, Jim (March 2, 2023). [https://www.nasdaq.com/articles/why-shares-of-biovie-jumped-51.7-in-february "Why Shares of BioVie Jumped 51.7% in February,"] NASDAQ.{{Cite web|url=https://fintel.io/so/us/bivi/peizer-terren-s|title=Peizer Terren S ownership in BIVI / BioVie Inc - 13F, 13D, 13G Filings|website=Fintel.io}} In 2021 the company entered into an agreement to buy a product from another company he controlled, NeurMedix, for up to $10 million and over 8 million BioVie shares; that led to a 15% share price drop in one day to $18.30 a share, and in April 2023 the company's share price was down to $8.08.{{Cite web|url=https://contracts.justia.com/companies/biovie-inc-4531/contract/268330/|title=Amendment No. 2 to Asset Purchase Agreement, dated January 13, 2023, by and between BioVie Inc. and Acuitas Group Holdings, LLC, and Acuitas Group Holdings, LLC, solely for purposes of Section 10.16 of the Agreement | BioVie Inc.|website=Justia}}{{Cite web|url=https://www.investorsobserver.com/news/stock-update/biovie-bivi-stock-drops-after-finalizing-asset-purchase-agreement-with-neurmedix-inc|title=BioVie (BIVI) Stock Drops After Finalizing Asset Purchase Agreement With NeurMedix, Inc.|date=April 28, 2021 |first=Carl|last=Pettit|website=Investors Observer}}{{Cite web|url=https://www.investorsobserver.com/symbols/bivi|title=BIVI Stock Analysis: Price, Forecast, and News|website=Investors Observer}} He resigned on March 2, 2023, the day after he was criminally indicted, at which point the company had not yet received any revenue, and had lost $26 million in 2022.{{Cite news |last=Iral |first=Vince |date=July 4, 2018 |title=BioVie sells stock, warrants to Acuitas, names CEO |language=en-us |work=S&P Global |url=https://www.spglobal.com/marketintelligence/en/news-insights/trending/y_o_oHF3J2IzKQBfejNCIg2 |access-date=November 25, 2020}}

In March 2021, Peizer became the controlling shareholder and board Executive Chairman of EVmo, a technology-enabled fleet management and rental company, which had a share price of $5.45 the prior month.{{Cite web|url=https://www.google.com/search?q=evmo+price+history|title=EVmo price history|website=}}{{Cite web|url=https://www.axios.com/pro/climate-deals/2023/02/17/evmo-board-director-terren-peizer-resigns-loan-default|title=EVmo loses its board chairman amid loan default|first=Megan|last=Hernbroth|date=February 17, 2023|website=Axios}}{{Cite press release|url=https://www.globenewswire.com/fr/news-release/2021/03/03/2186243/0/en/EVmo-Inc-Formerly-YayYo-Inc-Announces-that-Acuitas-Group-Holdings-LLC-has-closed-the-transaction-with-X-LLC-and-has-become-the-Largest-and-Controlling-Stockholder-in-the-Company.html|title=EVmo, Inc., Formerly YayYo, Inc., Announces that Acuitas Group Holdings, LLC, has closed the transaction with, X, LLC and has become the Largest and Controlling Stockholder in the Company|date=March 3, 2021|website=GlobeNewswire News Room}} He resigned as EVmo Chairman on February 17, 2023, as the company defaulted on a $7.5 million loan, and its stock price had declined to $0.17 per share.

He is the founder and CEO of Acuitas Group Holdings (of which he is the sole shareholder), biotech company NeurMedix (of which he was the sole shareholder, and which in 2021 made a multi-million dollar sale to BioVie, of which Peizer was CEO), and blockchain company Casperlabs.{{Cite web|url=https://www.biospace.com/article/biovie-acquires-biopharma-assets-from-privately-held-neurmedix/|title=BioVie Acquires Biopharma Assets from Privately Held NeurMedix|website=BioSpace|date=April 27, 2021}}

Until his 2023 indictment, he was CEO and chairman of Catasys, Inc. (later renamed Ontrak Inc.), a publicly traded healthcare company that he had founded in 2003.{{Cite web|url=https://www.lexology.com/library/detail.aspx?g=d852e2cb-3338-435f-8475-8a9d1120b2ec|title=DOJ and SEC bring charges for insider trading and fraudulent scheme using purported 10b5-1 plans|first=Cydney S.|last=Posner|date=March 6, 2023|website=Lexology}}{{Cite web|url=https://www.businesswire.com/news/home/20200706005545/en/Catasys-Inc.-is-now-Ontrak-Inc.|title=Catasys, Inc. is now Ontrak, Inc.|website=Business Wire|date=July 6, 2020}} Peizer was also Ontrak’s biggest shareholder. His 2018 compensation at the company was $2.4 million, over twice that of CEOs of similar companies.{{Cite web|url=https://finance.yahoo.com/news/catasys-inc-nasdaq-cats-ceo-114545120.html|title=Is Catasys, Inc.'s (NASDAQ:CATS) CEO Overpaid Relative To Its Peers?|website=Yahoo Finance|date=January 14, 2020}}

On March 1, 2023, after an FBI investigation, Peizer was charged with insider trading by the SEC, which alleged that he sold $20 million of Ontrak Inc. stock in 2021 while he was in possession of material nonpublic negative information related to the company's largest customer.{{Cite web|url=https://www.justice.gov/opa/pr/chairman-publicly-traded-health-care-company-convicted-insider-trading|title=Office of Public Affairs | Chairman of Publicly Traded Health Care Company Convicted of Insider Trading |date=June 21, 2024|website=United States Department of Justice}}{{Cite web|url=https://www.sec.gov/news/press-release/2023-42|title= SEC Charges Ontrak Chairman Terren Peizer With Insider Trading; Healthcare executive avoided more than $12 Million in losses by selling shares through Rule 10b5-1 trading plans before stock freefall|website=SEC.gov|date= March 1, 2023}}{{Cite web|url=https://www.jdsupra.com/legalnews/client-alert-doj-and-sec-used-data-3325885/|first1=Sara|last1=Cervantes|first2=Brandon|last2=Fox|first3=Charles|last3=Riely|title=Client Alert: DOJ and SEC Used Data Analytics to Target Insider Trading with 10b5-1 Plans|website=JD Supra|date=March 15, 2023}} Ontrak shares, which had traded at $85.21 in February 2021, were trading at under $1.00 since July 2022.{{Cite web|url=https://www.google.com/search?q=ontrak+share+price|title=Ontrak share price|website=}} In addition, the U.S. Department of Justice announced criminal charges of insider trading and securities fraud against Peizer, charging that thereby he had avoided $12 million in losses; Peizer was arrested.{{Cite web|url=https://www.justice.gov/opa/speech/assistant-attorney-general-kenneth-polite-jr-delivers-keynote-aba-s-38th-annual-national|author-link=Kenneth Polite|first=Kenneth A. |last=Polite, Jr.|title=Assistant Attorney General Kenneth A. Polite, Jr. Delivers Keynote at the ABA's 38th Annual National Institute on White Collar Crime|date=March 3, 2023|website=The United States Department of Justice}} His case was assigned to the U.S. District Court for the Central District of California, before U.S. District Judge Dale S. Fischer.

On March 2, 2023, he resigned as Ontrak CEO and Chairman. On January 31, 2024, a superseding indictment was filed, charging Peizer with additional counts of securities fraud and insider trading. On February 9, 2024, Peizer moved to dismiss the indictment.{{Cite web|url=https://www.natlawreview.com/article/dojs-first-10b5-1-plan-prosecution-survives-motion-dismiss|title=DOJ 10b5 1 Plan Prosecution Makes It Past Motion to Dismiss|website=National Law Review|author=Kenneth M. Breen, Phara A. Guberman, Elizabeth Gorman |date=March 11, 2024}} On March 7, 2024, Judge Fischer denied Peizer’s motion to dismiss, holding that the government had alleged facts sufficient to give rise to a charge of insider trading. Trial was set for June 4, 2024.

On June 21, 2024, he was convicted and found guilty by a Los Angeles, California, federal jury of three counts of insider trading and securities fraud, following a nine-day trial. Peizer was slated to be sentenced on October 21, 2024. On August 14, 2024, Peizer filed a motion for an acquittal and a motion for a new trial, with a hearing set for October 21, 2024. His sentencing hearing is set for June 23, 2025.{{Cite web|url=https://www.justice.gov/criminal/criminal-vns/case/united-states-v-terren-s-peizer|title=Criminal Division; United States v. Terren S. Peizer|work=U.S. Department of Justice }} Peizer could face a maximum penalty of 65 years in prison.{{Cite web|url=https://ktla.com/news/local-news/santa-monica-man-used-anti-insider-trading-measure-to-commit-fraud-doj/|title=Santa Monica man used anti-insider-trading measure to commit fraud: DOJ|date=March 1, 2023|work=KTLA|first=Cameron|last=Kiszla}}

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Category:Living people

Category:1959 births

Category:American businesspeople convicted of crimes

Category:American people convicted of fraud

Category:American investment bankers

Category:American male criminals

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Category:Businesspeople from Ohio

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Category:Drexel Burnham Lambert

Category:Finance fraud

Category:Goldman Sachs people

Category:People convicted of insider trading

Category:People from Beachwood, Ohio

Category:People from Dorado, Puerto Rico

Category:Private equity and venture capital investors

Category:Wharton School alumni

Category:21st-century American criminals

Category:20th-century American businesspeople

Category:21st-century American businesspeople