Action against Defendant, an investment banking executive, for alleged insider trading. The SEC alleges that Defendant used a brokerage account under another name to place trades regarding 12 different companies prior to the announcement of market-moving events about which he had material nonpublic information through his employment, raising approximately $140,000 in illicit profits.
Action against Respondent, an investment adviser, in connection with an alleged mismarking scheme involving two of its portfolio managers. According to the SEC, the managers used sham broker quotes to inflate the value of securities held by a credit fund advised by Respondent, causing the credit fund to falsely report inflated returns, overstate its net asset value, misclassify certain distressed assets, and overpay performance and management fees. The SEC further alleges that Respondent issued statements ... Continue Reading
Action against Defendant, the friend of an investment banker, for allegedly trading while in possession of confidential information regarding the 2013 acquisition of a pork company by a China-based meat and food processing company. The SEC alleges that Defendant learned about the acquisition from the investment banker, who was working on the deal, and purchased shares of the target before selling them after the public announcement of the deal, realizing profits of $560,000. The SEC ... Continue Reading
Action against Defendants, two friends of an investment banker, for allegedly trading while in possession of confidential information regarding the merger of a potato chip manufacturer with a privately held snack company. The SEC alleges that Defendants learned about the acquisition from the banker, who was working on the deal, and purchased shares of the target before selling the shares after the public announcement of the deal, realizing profits of $9,319 and $5,877, respectively. Defendants ... Continue Reading
Action against Respondent, the relative of a former employee of a beverage company, for allegedly using material nonpublic information received from his relative to trade ahead of the announcement of a planned equity stake purchased by Coca-Cola. Respondent has agreed to pay disgorgement in the amount of $15,141.97, prejudgment interest in the amount of $1,740.39, and a civil penalty in the amount of $15,141.97.
Action against Defendant, a friend of the CEO of a medical products supplier, for allegedly suggesting that his relatives trade on material nonpublic information acquired from the CEO regarding a planned acquisition. The SEC alleges that, while in possession of this information, Defendant’s relatives purchased 22,000 company shares, reaping profits of approximately $145,000 after the acquisition was announced. Defendant has agreed to settle the SEC’s charges by paying a civil penalty in the amount of ... Continue Reading
Action against Defendants, a husband and wife with personal connections to an employee of an e-commerce company, for allegedly trading on material nonpublic information relating to the company’s earnings reports over a two-year period. According to the SEC, Defendants’ options trades made ahead of the company’s earnings reports, which netted over $900,000, would have been extremely risky absent inside information. The SEC also alleged that Defendants made misrepresentations to SEC investigators regarding their connections to ... Continue Reading
Action against Defendant, the former CIO of Equifax’s U.S. business unit, for allegedly trading on material nonpublic information regarding a data breach that was disclosed in September 2017. The SEC alleges that, prior to Equifax’s public announcement of the breach, Defendant exercised his vested stock options and then immediately sold the shares, avoiding $117,000 in losses.
Action against Defendant, an employee of UTi Worldwide, Inc. (“UTi”), a transportation and logistics company, for allegedly trading on material nonpublic information regarding his employer’s pending acquisition by DSV Air & Sea Holdings A/V. The SEC alleges that Defendant, who was responsible for helping to publish press releases, learned of the acquisition the day before it was announced, purchased 17,500 shares of UTi, and then sold them at a substantial profit following the announcement.
Action against Defendant, a pharmaceutical company employee, for buying stock in a company his employer was preparing to acquire while in possession of information regarding the proposed acquisition, which he received from a legal memo advising him not to trade in the target’s stock. Defendant has agreed to pay disgorgement of $2,287, prejudgment interest, and a civil penalty of $6,681.
Action against Defendant and Respondent, the former CEO of a medical parts distributor and a senior officer of that distributor, for alleged insider trading. The SEC alleges that Defendant and Respondent came into possession of confidential information from a senior officer of a major customer regarding the potential acquisition of the customer by another firm. Defendant and Respondent then purchased stock in the target customer and sold it at a profit after the acquisition was ... Continue Reading
Action against Defendants, unknown traders, in connection with the alleged use of foreign brokerage accounts to purchase out-of-the-money call options on Bioverativ stock through a U.S. brokerage firm and on U.S. exchanges in the days leading up to the public announcement of Sanofi’s acquisition of Bioverativ. The court has issued an emergency order freezing accounts related to the trading, and the SEC is seeking final judgment requiring the traders to, among other things, disgorge any ... Continue Reading
Action against Respondents, an employee of an engineering, design, and construction company and his friend, for allegedly tipping material nonpublic information (“MNPI”) and engaging in insider trading in connection with the potential acquisition by the employee’s company of a technical services company. The SEC alleges that Respondent employee communicated MNPI to his friend regarding the acquisition because he wanted to enlist his assistance in securing new employment. The SEC further alleges that Respondent friend traded ... Continue Reading
Action against Defendants, a former registered representative and a former day trader, in connection with an alleged agreement to exchange cash for preferential access to initial public offerings (“IPOs”). According to the SEC, Defendant representative arranged to give customers, including Defendant day trader, larger allocations of IPOs being marketed by Defendant representative’s brokerage firm employers in exchange for undisclosed kickbacks. Parallel criminal charges have been filed against Defendant representative.
Action against Defendants, a former employee of a publicly traded company and his friend, for allegedly trading while in possession of confidential information relating to the acquisition of the company. According to the SEC, the employee tipped his friend regarding the acquisition and Defendants both acquired company call options in the friend’s name. Defendants have agreed to pay $369,720 in disgorgement and $43,147.79 in prejudgment interest. Parallel criminal charges against Defendants have been filed.
Action against Defendant, a therapist, for allegedly trading on material nonpublic information regarding the acquisition of Zulily, Inc. by Liberty Interactive that he learned from a Zulily employee during a counseling session. Defendant agreed to pay disgorgement in the amount of $10,227.73, prejudgment interest of $811.80, and a civil penalty of $10,227.73.
Action against Defendants, a company and its sole owner, in connection with alleged participation in an insider trading ring. According to the SEC, Defendant owner received material nonpublic information from banks marketing secondary stock offerings pursuant to a wall-crossing agreement and then used Defendant company as a trading vehicle to short stocks before the offerings were announced. The SEC also alleges that Defendant owner violated Regulation M by trading during the restricted window prior to ... Continue Reading
Action against Defendant for allegedly trading in a biotechnology company, Puma Biotechnology, Inc., at which his brother was employed. Defendant traded while in possession of material nonpublic information relating to drug trials conducted by the company. The SEC alleges that Defendant made $107,000 in profits from these trades. Defendant has agreed to pay $107,000 in disgorgement, $11,996.86 in prejudgment interest, and a civil penalty of $107,000.
Action against Defendants, a marketing and management consultant and her friend, for allegedly trading on material nonpublic information obtained by Defendant consultant while performing consultant services for the subsidiary of a private equity firm. According to the SEC, Defendant consultant allegedly tipped her friend that the private equity firm would be acquiring ADT Corporation (“ADT”). Defendants allegedly purchased shares of ADT while in possession of this information and before the acquisition was announced. Defendants agreed ... Continue Reading
Action against Defendant, a petroleum engineer, for allegedly trading on material nonpublic information while employed by an energy company performing exploratory work on a newly discovered resource play. Defendant allegedly conducted trades in his employer’s shares and call options just before the company’s announcement of the newly discovered resources. Defendant agreed to pay disgorgement of $214,295.07, $7,219.36 in prejudgment interest, and a $214,295.07 penalty.
Action against Defendant for allegedly buying shares in a global supply chain services company on the basis of confidential information regarding an acquisition obtained from a friend, one of the company’s executives. Defendant sold the shares at a profit once the acquisition became public. Defendant has agreed to pay $8,330 in disgorgement, $527 in prejudgment interest, and a civil penalty of $24,990.
Action against Defendants, a technology company insider and several family members for allegedly engaging in insider trading. According to the SEC, Defendant Jayapalan, a SanDisk, Inc. employee, learned that the company was entering into negotiations to acquire Fusion-io, Inc. and tipped his wife, uncle, and aunt about the pending acquisition. The SEC further alleges that, prior to the public announcement of the acquisition, the Defendants purchased large amounts of stock using eight different brokerage accounts. ... Continue Reading
Action against Respondents for alleged insider trading in the securities of Canadian oil company Nexen Inc. (“Nexen”) prior to an announcement that the Chinese oil company CNOOC Limited had agreed to acquire Nexen for approximately $15.1 billion. The SEC alleges the Respondent Zhang, President and CEO of CNOOC’s Canadian subsidiary, knew the status of the acquisition negotiations and, less than a week before the acquisition’s announcement, contacted a business acquaintance and asked her to purchase ... Continue Reading
Action against Defendants, a stock market analyst and two investment bankers, for alleged insider trading. The SEC alleges that Defendant Napodano, who headed a division of Zacks Investment Research called Zacks Small Cap Research (“Zacks”), misled penny stock investors by falsely representing that he was not holding or trading positions in the companies he wrote about. However, he was trading these companies’ stocks based on nonpublic information regarding the publication date of his research. The ... Continue Reading