Paul Jorgensen, the former chief revenue officer of Doximity, has been sentenced to prison for securities fraud in connection with a multimillion-dollar scheme to trade in Doximity stock and options based on inside information in advance of the company’s quarterly earnings calls.
Mr Jorgensen was sentenced on May 21, 2026, by U.S. district judge Katherine Polk Failla to 26 months in prison. United States Attorney for the Southern District of New York Jay Clayton made the announcement.
According to the allegations in the Information and statements made in public court proceedings, Mr Jorgensen engaged in a scheme to reap illegal profits by trading on material nonpublic information regarding Doximity, a publicly traded company, in violation of the duties of trust and confidence owed to the company and its shareholders.
Doximity is an online networking service for medical professionals that trades on the New York Stock Exchange under the ticker symbol DOCS.
Mr Jorgensen joined Doximity in 2017 and became Chief Revenue Officer in 2022. As a senior executive at Doximity, Mr Jorgensen had access to confidential information regarding Doximity’s financial outlook, performance, and earnings, and owed a duty of trust and confidence to the company.
Doximity restricted its employees from trading in the lead-up to the company’s quarterly earnings calls and from engaging in options trading. Doximity further required all employees to hold their Doximity shares in company-monitored brokerage accounts.
In July 2022, as the CRO, Mr Jorgensen became aware that Doximity’s add-on sales to clients, referred to as “upsells”, had declined over the previous quarter. On July 28, 2022, Mr Jorgensen attended a Board meeting in advance of the upcoming earnings call in which the company’s negative results were discussed.
Following the board meeting, Mr Jorgensen texted a close family member that he was “[n]ot selling [his] DOCS shares” because he had “non-public confidential info and it’s just not right to sell”. Two days later, however, after Mr Jorgensen learned that he had been reassigned to a sales role at the company, Mr Jorgensen texted the same family member that he “decided to sell [his] DOCS shares” because he needed to “protect us first and foremost”.
The following day, Mr Jorgensen sold 61,162 shares of Doximity that he secretly held in a personal brokerage account.
During the company’s quarterly earnings call on August 4, 2022, Doximity publicly announced negative results on upsell and lowered its annual guidance by six per cent. Doximity’s share price fell by approximately seven per cent, and Mr Jorgensen avoided losses of more than $300,000.
In 2023, Mr Jorgensen again traded based on Doximity’s confidential information. In July 2023, he became aware that Doximity’s upsells had continued to decline over the previous quarter. In addition, on July 13, 2023, Mr Jorgensen learned that he was being terminated as part of a larger round of layoffs, and that the layoffs would be announced on the company’s upcoming quarterly earnings call.
In advance of the earnings call, Mr Jorgensen sold 15,000 shares of Doximity stock, earning $114,000 in illicit profits, and 1,300 call options, earning an additional $200,000 in illicit profits.
Mr Jorgensen also purchased 4,700 put options using his personal brokerage account.
During the company’s quarterly earnings call on August 8, 2023, Doximity publicly announced its company layoffs and negative results regarding upsells and lowered its annual guidance by eight to nine per cent.
Doximity’s share price fell by approximately 23 per cent. Following the earnings call, Mr Jorgensen closed out his put position, earning nearly $2 million in illicit profits. Mr Jorgensen was terminated from Doximity in August 2023.
In addition to the prison sentence, Mr Jorgensen, 53, of Charlotte, North Carolina, was sentenced to two years of supervised release and ordered to pay $2,532,775.52 in forfeiture.
