Terren Peizer

Terren Scott Peizer
Born	(1959-07-31) July 31, 1959 Beachwood, Ohio, U.S.
Occupation(s)	Entrepreneur, investor, former CEO and chairman of Ontrak Inc.
Years active	1983–2024
Known for	Insider trading conviction; founder, CEO and chairman of Ontrak Inc.

Terren Scott Peizer (born July 31, 1959) is an American entrepreneur who was found guilty of insider trading and securities fraud. His professional journey began as a high-yield bond salesman at Drexel Burnham Lambert, where he later testified against his former superior Mike Milken in 1990, earning immunity from both criminal charges and SEC penalties. Over the years, Peizer took on investment and leadership roles in numerous small-cap firms spanning various sectors, many of which encountered financial difficulties or bankruptcy during or shortly after his tenure.

Peizer served as founder, CEO, and chairman of Ontrak Inc., a publicly listed healthcare organization, until his departure in March 2023 amid insider trading and securities fraud allegations. In June 2024, a federal jury in California convicted him on three counts connected to these offenses. He faces a potential prison sentence of up to 65 years.

Early life and education

Peizer hails from Beachwood, Ohio. He completed his secondary education at Beachwood High School and earned a Bachelor of Science degree in Economics from the Wharton School of the University of Pennsylvania. He maintains residences in both Dorado, Puerto Rico and Santa Monica, California.

Drexel Burnham Lambert and cooperation against Milken

Following his graduation in 1983, Peizer briefly worked at Goldman Sachs before joining First Boston as a salesman specializing in high yield bond products. In 1985, he was recruited by Michael Milken to join Drexel Burnham Lambert as a junk bond salesman. At Drexel, Peizer managed the Solomon Asset Management account, which was implicated in unlawful insider trading and tax evasion schemes. He reported directly to Milken, whom he regarded highly.

Beginning in 1988, Peizer became a key witness providing critical information against Milken and Solomon during investigations into their illicit activities. At Milken’s 1990 pre-sentencing hearing on securities fraud charges, Peizer testified under an agreement granting him immunity from criminal prosecution and SEC enforcement actions. Milken subsequently entered a guilty plea and served nearly two years incarcerated.

1989–2000

After departing Drexel, Peizer transitioned into private investment across various small companies. In 1989, he acquired the Omaha Racers, a minor league basketball franchise, but sold the team the following year due to ongoing financial losses.

In 1991, he took control of UTI Chemicals Inc., a plastics manufacturer with 26 employees, assuming the presidency with an annual salary of $100,000; the company recorded losses exceeding three million dollars annually for the subsequent two years. Peizer relinquished his chairman position in 1994.

That same year, Peizer invested $3.5 million in convertible debentures issued by Candies, Inc., a shoe import and marketing firm, gaining a seat on its board. He held warrants for 1.1 million shares at $10 each and divested over 90% of his holdings shortly before the company disclosed a $1.6 million customs duty liability. Following federal investigations into customs underpayments, Candies’ stock plummeted and Peizer resigned from the board.

Peizer acquired majority ownership—over 50%—of Urethane Technologies, a small-cap firm marketing flat-resistant bicycle tires, serving as chairman. He sold his stake in 1993 reportedly realizing approximately $6 million in profit; nevertheless, the company later posted losses and filed for bankruptcy in 1997.

In 1993, he obtained a 37% equity interest in now-defunct computer components manufacturer CMS Enhancements, acting as chairman for two years.

During the mid-1990s, Peizer was affiliated with Towers Financial Corporation, a debt collection company later revealed as a Ponzi scheme connected to Steven Hoffenberg and Jeffrey Epstein.

He also invested in Advanced Promotion Technologies, which developed electronic barcode coupon devices; however, he exited prior to the company’s bankruptcy filing in 1996.

Between 1997 and 1999, Peizer served as president of Hollis-Eden Pharmaceuticals, an early-stage pharmaceutical company that had yet to generate sales or profits by 1998. The firm attracted media attention due to stock price surges despite lacking revenue streams. In March 1999, Peizer resigned concurrently with CEO Richard B. Hollis’s dismissal. By September that year, Hollis-Eden's shares had fallen substantially from their highs.

In 1999, Peizer secured funding for and invested in Tera Computer Company, an unprofitable supercomputer manufacturer employing 112 staff members. This capital infusion enabled Tera to acquire assets from Cray Research. He held chairman and director roles from 1999 until stepping down in 2000 due to anticipated U.S. Department of Defense security clearance requirements associated with classified government contracts that Tera did not expect him to obtain.

2001–present

In 2004, Peizer established Hythiam Inc., a modest pharmaceutical enterprise. By 2006, as the majority owner, he earned $1.3 million in compensation. The company secured the rights to an addiction treatment called "Prometa" (Gabasync), despite the absence of placebo-controlled trials, peer-reviewed research, or FDA approval. Prometa was licensed to physicians through a franchise model charging up to $15,000 per patient. Barrons characterized Peizer’s ventures as largely underperforming small-cap stocks but identified Hythiam as his "most significant success." Nevertheless, media platforms such as 60 Minutes and NBC News criticized the firm for circumventing clinical testing and regulatory endorsement; the treatment ultimately proved ineffective. By 2008, Hythiam had experienced five years of consecutive net losses, with its stock price tumbling from $61.26 in 2007 to $0.18 three years later—a decline of 99.7%. Morningstar ranked the company among the poorest performers in its sector based on asset performance.

Peizer took on the roles of CEO and chairman at BioVie in 2018, holding an 88% ownership stake as of June 2021. In 2021, BioVie agreed to acquire a product from NeurMedix—another entity under Peizer’s control—for up to $10 million plus over eight million shares of BioVie stock. This transaction caused a 15% drop in BioVie’s share price within a single day to $18.30; by April 2023, shares had further declined to $8.08. Peizer stepped down on March 2, 2023—the day following his criminal indictment—at a time when BioVie had yet to produce any revenue and reported a $26 million loss in 2022.

In March 2021, Peizer became the controlling shareholder and Executive Chairman of EVmo, a technology-driven fleet management and rental firm whose shares were previously valued at $5.45. He resigned from his position as EVmo Chairman on February 17, 2023, subsequent to the company defaulting on a $7.5 million loan and its stock price collapsing to $0.17 per share.

Peizer is also the founder and CEO of Acuitas Group Holdings (where he is the sole shareholder), biotech company NeurMedix (sole owner until its multi-million dollar asset sale to BioVie in 2021), and blockchain enterprise Casperlabs.

Ontrak: indictment and conviction

Before his indictment in 2023, Peizer held the positions of CEO and chairman at Catasys, Inc.—later renamed Ontrak Inc.—a publicly traded healthcare firm he founded in 2003. He was also Ontrak’s largest shareholder. In 2018, his remuneration amounted to $2.4 million, more than twice that of CEOs at comparable companies.

On March 1, 2023, after an FBI probe, Peizer faced SEC charges for insider trading, accused of offloading $20 million worth of Ontrak stock in 2021 while possessing material nonpublic adverse information regarding the company’s principal client. Ontrak shares, which traded at $85.21 in February 2021, dropped below $1.00 by July 2022. The U.S. Department of Justice filed criminal charges alleging insider trading and securities fraud; authorities claimed Peizer avoided losses totaling $12 million and subsequently arrested him. His case was assigned to the U.S. District Court for the Central District of California under Judge Dale S. Fischer.

Peizer resigned as Ontrak’s CEO and Chairman on March 2, 2023. A superseding indictment was submitted on January 31, 2024, adding further securities fraud and insider trading allegations. His motion to dismiss this indictment was denied on March 7, 2024; trial is scheduled for June 4, 2024.

Following a nine-day trial, on June 21, 2024, a federal jury found Peizer guilty on three counts related to insider trading and securities fraud. In August 2024, he filed motions seeking acquittal and a new trial; a hearing is set for October 21, 2024. Sentencing will occur on June 23, 2025. He faces a maximum prison sentence totaling up to 65 years.

On June 23, 2025, Judge Fischer sentenced Peizer to a prison term of 42 months for insider trading offenses and ordered payment of a $5.25 million fine along with forfeiture exceeding $12.7 million in unlawful profits.