Former Doximity Executive Sentenced to Federal Prison in Multimillion-Dollar Insider Trading Scheme

Former Doximity Chief Revenue Officer Paul Jorgensen has been sentenced to 26 months in federal prison after committing a multimillion-dollar insider trading scheme involving confidential company earnings information tied to the publicly traded medical networking company.

Federal prosecutors in the Southern District of New York announced that Jorgensen, 53, of Charlotte, North Carolina, was sentenced by U.S. District Judge Katherine Polk Failla after being convicted of securities fraud connected to illegal trading activity conducted ahead of multiple Doximity quarterly earnings announcements.

Court records and evidence presented during the proceedings showed Jorgensen generated more than $2.5 million in illicit profits and avoided losses by trading Doximity stock and options contracts while possessing material nonpublic information obtained through his executive position within the company.

Doximity, which trades on the New York Stock Exchange under the ticker symbol DOCS, operates as a digital networking platform and technology service for medical professionals, physicians, healthcare providers, and healthcare organizations. As Chief Revenue Officer, Jorgensen had direct access to confidential financial forecasts, sales performance data, internal revenue discussions, earnings projections, and executive-level operational reporting before the information became public.

Evidence presented during the case showed the illegal trading activity centered heavily around declining “upsell” revenue performance involving existing client accounts. Internal company data showed weakening sales activity and deteriorating financial trends before multiple quarterly earnings disclosures that later triggered major declines in Doximity’s stock price.

Court evidence showed Jorgensen attended a July 2022 board meeting where deteriorating company results were discussed internally ahead of a scheduled earnings release. Records introduced during the proceedings showed Jorgensen privately acknowledged he possessed confidential nonpublic information and recognized that selling shares would be improper.

The evidence further showed that shortly afterward, Jorgensen secretly liquidated more than 61,000 Doximity shares held in a personal brokerage account outside company-monitored compliance systems. Following Doximity’s August 2022 earnings announcement, the company’s stock price fell approximately seven percent after publicly disclosing negative sales performance and reduced annual guidance. The illegal trades allowed Jorgensen to avoid losses exceeding $300,000.

Federal prosecutors also proved Jorgensen engaged in another round of insider trading activity in 2023 after learning Doximity’s sales weakness continued and that the company was preparing layoffs tied to broader operational restructuring.

Evidence showed that before Doximity publicly disclosed the layoffs and lowered guidance during its August 2023 earnings call, Jorgensen sold additional shares, traded call options, and purchased thousands of put options positioned to profit from a major decline in the company’s stock price.

When Doximity later announced layoffs and reduced guidance during the August 2023 earnings call, the company’s stock price dropped approximately 23 percent. Following the market decline, Jorgensen closed his put option positions and generated nearly $2 million in illegal profits tied directly to confidential internal company information.

The case underscores expanding federal enforcement efforts targeting insider trading operations involving executive-level access to confidential financial data, earnings guidance, layoffs, internal forecasting models, and strategic corporate disclosures capable of materially impacting stock prices.

Federal investigators increasingly rely on forensic reviews of brokerage activity, encrypted communications, executive access logs, compliance systems, internal board discussions, and digital financial records capable of reconstructing trading intent, timing, and knowledge of confidential information.

In addition to the prison sentence, Jorgensen was ordered to serve two years of supervised release and pay $2,532,775.52 in forfeiture.

The Federal Bureau of Investigation led the investigation with assistance from the U.S. Securities and Exchange Commission. Assistant U.S. Attorney Alexandra Rothman prosecuted the case through the Southern District of New York’s Securities and Commodities Fraud Task Force.

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