Blog Posts Tagged With Insider Trading

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SEC v. Benjamin Taylor et al. (S.D.N.Y. Oct. 22, 2019, Contested)

Action against Defendants, two investment bankers and a trader, for alleged insider trading.  According to the SEC, Defendant investment bankers obtained material nonpublic information about potential acquisitions and tender offers and tipped Defendant trader, who traded in the target firms’ securities.  The SEC further alleges that Defendant investment bankers received cash and other benefits from Defendant trader.

SEC Complaint 

SEC Litigation Release
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SEC v. Bryan Cohen and George Nikas (S.D.N.Y. Oct. 18, 2019, Contested)

Action against Defendants, an investment banker and a trader, for alleged insider trading.  According to the SEC, Defendant investment banker learned material nonpublic information about potential acquisitions and tipped Defendant trader, who traded in the target firms’ securities.  The SEC further alleges that Defendant investment banker received cash from Defendant trader in exchange for providing tips.

SEC Complaint 

SEC Litigation Release
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SEC v. James Alex Irvin (S.D. Fla. Sept. 24, 2019, Settled)

Action against Defendant, an executive of a publicly traded company, for alleged insider trading.  The SEC alleges that Defendant learned material nonpublic information about his employer’s earnings and entered long positions ahead of the earnings announcements.  The SEC further alleges that Defendant tipped a friend this information who then made similar trades in the stock.  Defendant has agreed to pay disgorgement of $227,795, prejudgment interest of $34,494, and a civil penalty of $252,270.

SEC Complaint
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SEC v. James Wallace Nall III, et al. (S.D. Ala. Sept. 23, 2019, Settled)

Action against four Defendants, who are friends, relatives, and business associates, for alleged insider trading.  The SEC alleges that one Defendant acquired material nonpublic information about a pending merger though his father, a member of the company’s board, and tipped friends who purchased the stock ahead of the merger announcement and sold thereafter.  One Defendant has agreed to pay disgorgement of $139,774.17, prejudgment interest of $19,920.55, and a civil penalty of $139,774.17. A second Defendant
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SEC v. Keith G. Daubenspeck and Geoffrey L. Homer (N.D. Ill. Sept. 5, 2019, Partially Settled, Partially Contested)

Action against Defendants, the boyfriend of a beauty-company employee and his friend, for alleged insider trading.  According to the SEC, one Defendant learned material nonpublic information about upcoming earning releases from his girlfriend.  The SEC alleges that he tipped the material nonpublic information his friend, and Defendant tippee then purchased stock in advance of two earnings releases.  Defendant tippee has agreed to pay disgorgement of $111,472, prejudgment interest of $17,586, and a civil penalty of
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In re Lorenz Erne (A.P. Aug. 15, 2019, Settled)

Action against Respondent, a former executive at a pharmaceutical company, for alleged insider trading. According to the SEC, Respondent learned material nonpublic information about an upcoming merger in the course of his employment. The SEC alleges that Respondent then bought shares in the target company prior to the merger’s announcement. Respondent has agreed to pay disgorgement of $159,228 and a civil penalty of $79,614.

SEC Order

SEC Administrative Summary
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SEC v. Harsh Nahata and Ajay S. Bhandari (N.D. Ga. Aug. 12, 2019, Partially Settled, Partially Contested)

Action against Defendants, a former manager of a packaging company and his friend, for alleged insider trading. According to the SEC Defendant former manager learned material nonpublic information about an acquisition by his employer and tipped Defendant friend. The SEC alleges that Defendants then purchased shares in the target firm’s stock before the acquisition’s announcement and sold them thereafter. Defendant friend has agreed pay disgorgement of $22,426, prejudgment interest of $1,233, and a civil penalty
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SEC v. Bill Tsai (S.D.N.Y Aug. 12, 2019, Contested)

Action against Defendant, an investment banker, for alleged insider trading. According to the SEC, Defendant learned material nonpublic information about an upcoming acquisition through his employer, which was advising the acquiring firm. The SEC alleges that Defendant then bought call options on the target firm before the acquisition’s announcement and sold them thereafter.

SEC Complaint

SEC Press Release
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