Blog Posts Tagged With Insider Trading

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In re Unal Patel and Amish Patel (A.P. Sept. 28, 2018, Settled)

Action against Respondents, a CPA and a doctor, for allegedly trading while in possession of confidential information regarding an impending acquisition. According to the SEC, Respondent CPA received material nonpublic information from a friend who learned of an acquisition through his employer. The SEC alleges that Respondent CPA shared the confidential information with Respondent doctor, and both Respondents purchased call options in the target company while in possession of the confidential information. Respondent CPA has
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SEC v. Bryan R. Ziegenfuse (E.D. Pa. Sept. 28, 2018, Settled)

Action against Defendant, a former mortgage loan servicing company vice president, for alleged insider trading. The SEC alleges that Defendant learned of his employer’s planned acquisition of another company and received emails regarding the merger prior to the public announcement. According to the SEC, Defendant used a family member’s account to purchase shares and options before the announcement of the acquisition and while in possession of the material nonpublic information. The SEC further alleges that
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In re Thomas Earl Hayden, II, et al. (A.P. Sept. 27, 2018, Settled)

Action against Respondents, a beverage company manager, his father, and a family friend, for allegedly tipping confidential information learned by the manager and trading while in possession of that information. According to the SEC, Respondent manager shared information regarding an impending deal involving his company and another beverage company with his father and family friend. Respondents purchased shares in Respondent manager’s company while in possession of this information. Respondent employee has agreed to pay disgorgement
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In re Gary Bernard Ross (A.P. Sept. 27, 2018, Settled)

Action against Respondent, an investment adviser principal and licensed attorney, for alleged insider trading. According to the SEC, Respondent learned of a forthcoming partnership between two beverage companies from his advisory client and purchased common stock in one of the companies while in possession of the confidential information and prior to the public announcement of the partnership. Respondent has agreed to pay disgorgement of $86,117.82, prejudgment interest of $12,864.41, and a civil penalty of $86,117.82.
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In re Thomas Earl Hayden, II, et al. (A.P. Sept. 27, 2018, Settled)

Action against Defendants, a corporate deal advisor and his wife, for Defendant adviser’s alleged trading in options while in possession of confidential information learned through his employment about upcoming acquisitions of China-based technology companies.  The SEC alleges that Defendant adviser disguised these transactions by trading with an account under his wife’s name.  The SEC has brought charges against Defendant’s wife as a relief defendant.

SEC Litigation Release
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SEC v. Rong Chen, et al. (C.D. Cal. Sept. 10, 2018, Contested)

Action against Defendants, a corporate deal advisor and his wife, for Defendant adviser’s alleged trading in options while in possession of confidential information learned through his employment about upcoming acquisitions of China-based technology companies.  The SEC alleges that Defendant adviser disguised these transactions by trading with an account under his wife’s name.  The SEC has brought charges against Defendant’s wife as a relief defendant.

SEC Litigation Release
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SEC v. Rong Chen, et al. (C.D. Cal. Sept. 10, 2018, Contested)

Action against Defendants, a corporate deal advisor and his wife, for Defendant adviser’s alleged trading in options while in possession of confidential information learned through his employment about upcoming acquisitions of China-based technology companies. The SEC alleges that Defendant adviser disguised these transactions by trading with an account under his wife’s name. The SEC has brought charges against Defendant’s wife as a relief defendant.

SEC Litigation Release
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SEC v. Amer Deeba (N.D. Cal. Aug. 30, 2018, Settled)

Action against Defendant, a former Chief Commercial Officer of a cloud security and services company, for alleged insider trading.  According to the SEC, Defendant gifted his brothers shares in the company and later learned that it had missed its internal sales forecast. The SEC alleges that Defendant informed his brothers of the miss and coordinated the sale of their stock with their brokerage firm.  Defendant has agreed to pay a civil penalty of $581,170.

SEC
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SEC v. Kendricks, et al. (E.D. Pa. Aug. 29, 2018, Contested)

Action against Defendants, a professional athlete and former investment bank analyst, for alleged insider trading.  According to the SEC, Defendant banker shared information regarding upcoming acquisition with Defendant athlete. The SEC alleges that, while in possession of this information, Defendant athlete purchased shares in the companies that were soon to be acquired and sold his positions after the deals were publicly announced.  The SEC further alleges that Defendant athlete rewarded Defendant banker with cash, NFL
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SEC v. Fishoff, et al. (S.D.N.Y. Aug. 23, 2018, Contested)

Action against Defendants, a company, its president and sole owner, a second company controlled by the owner, a healthcare investment consultant and portfolio manager, and an officer at a third company, for alleged involvement in an insider trading scheme.  According to the SEC, Defendant officer tipped Defendant consultant regarding a forthcoming licensing agreement knowing that he was in the business of selling nonpublic information to traders. The SEC alleged that Defendant consultant tipped Defendant owner
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In re James T. Lentz (A.P. Aug. 22, 2018, Settled)

Action against Respondent, a former VP of Sales at a cemetery and funeral home operator, for allegedly benefiting from confidential information obtained through his employer.  The SEC alleges that Respondent learned about a substantial decline in sales that would necessitate a reduction in the company’s distribution payments and subsequently sold all of his shares in the company ahead of the public announcement of the decline.  Respondent has agreed to pay disgorgement of $9,115, prejudgment interest
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In re Ismail Lila (A.P. Aug. 21, 2018, Settled)

Action against Respondent, a former in-house attorney at a corporation providing marine transportation, oil production, storage, and other services to the oil industry, for allegedly trading while in possession of confidential information regarding a strategic business partnership ahead of its public announcement.  Respondent allegedly learned of the partnership through his work at the company and purchased shares of the corporation ahead of its announcement, generating over $28,642 in profit.  Respondent has agreed to pay $28,642
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In re Joseph Jennings, CPA (A.P. Aug. 20, 2018, Settled)

Action against Respondent, a former director at a major accounting and auditing firm, for allegedly trading on the basis of confidential information ahead of the merger of Kraft Foods Group, Inc. and the H.J. Heinz Company.  The SEC alleges that Respondent learned about the merger through his work at the accounting firm and, two days before the merger’s public announcement, purchased 100 Kraft call options in a close relative’s online brokerage account, after which the
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SEC v. A. Catlin Cade, IV (N.D. Al. Aug. 17, 2018, Settled)

Action against Defendant certified public accountant for alleged insider trading.  According to the SEC, Defendant misappropriated material nonpublic information concerning the merger of a potato manufacturer with a snack company.  The SEC alleges that Defendant received the information through his work as an accountant providing tax advice for a private company owned by a member of the potato manufacturer’s board of directors.  Defendant has agreed to settle the charges and to pay disgorgement, prejudgment interest,
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SEC v. Honglan Wang (A.P. Aug. 16, 2018, Settled)

Action against Respondent, a research scientist at a clinical-stage biopharmaceutical company, for allegedly trading while in possession of confidential information regarding the pending announcement of the positive results of one of the company’s drug trials.  The SEC alleges that Respondent learned about the results and subsequently purchased 8,600 shares of the company’s common stock, then selling them immediately after the public announcement.  Respondent has agreed to pay disgorgement of $134,000, prejudgment interest of $3,698.94, and
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SEC v. Christopher Collins, et al. (S.D.N.Y. Aug. 8, 2018, Contested); SEC v. Lauren Zarsky (S.D.N.Y. Aug. 8, 2018, Contested); SEC v. Dorothy Zarsky (S.D.N.Y. Aug. 8, 2018, Settled); In re Lauren Zarsky, CPA (Aug. 15, 2018, Settled)

Action against Defendants, a U.S. congressman, his son, and his son’s girlfriend’s father, for allegedly tipping confidential information learned by the congressman in his capacity as an independent director of an Australian biotech company and trading while in possession of that information.  The SEC alleges that Defendant congressman learned from the biotech company’s CEO that a key drug trial had resulted in clinical failure and that he subsequently shared this information with his son, who
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In re Aaron R. Smith (A.P. Aug 7, 2018, Settled)

Action against Respondent, the son of a bank’s board member, for allegedly trading while in possession of confidential information regarding the bank’s pending acquisition that was shared with him by his father.  The SEC alleges that, upon learning the confidential information, Respondent transferred money into a brokerage account and began purchasing shares of the bank.  Respondent has agreed to pay disgorgement of $40,578.28, prejudgment interest of $3,205.07, and a civil penalty of $40,578.28.

SEC Administrative
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SEC v. Lozuk (S.D. Cal. July 31, 2018, Settled)

Action against Defendant, a former senior vice president of a genomics company, for allegedly tipping a friend regarding a pending acquisition by his company.  According to the SEC, Defendant told his friend about the acquisition at a social event and the friend purchased a total of 18,000 shares before the public announcement of the deal and sold them after the deal became public.  Defendant has agreed to pay a penalty of $26,643.  Separately, his friend
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SEC v. Richard T. Cunniffe (S.D.N.Y. July 25, 2018, Settled)

Action against Defendant, managing director of a registered broker-dealer, in connection with an alleged insider trading scheme.  The SEC alleges the Defendant placed trades on behalf of an investment banker and the investment banker’s father in Defendant’s personal brokerage accounts while in possession of material nonpublic information provided by the investment banker.  The SEC further alleges that the three individuals shared the profits from these trades.  Defendant has agreed to pay disgorgement and prejudgment interest. 
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SEC v. Matthew Brunstrum and Susan Brunstrum (N.D. Ill. July 24, 2018, Settled)

Action against Defendants, a financial analyst and his mother, in connection with alleged insider trading.  The SEC alleges Defendant learned of his employer company’s earnings report before they were announced, traded the company’s stock options while in possession of this information, and encouraged his mother to trade in the stock as well.  Defendants have agreed to pay disgorgement, prejudgment interest, and a civil penalty.

SEC Complaint

SEC Litigation Release
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In re Fred Tinker (A.P. July 24, 2018, Settled)

Action against Respondent, the Vice President of Finance of a technology company, in connection with alleged insider trading.  The SEC alleges that Respondent traded while in possession of material, non-public information regarding a proposed buyout of his employer company. Respondent has agreed to pay disgorgement of $89,171.88, prejudgment interest of $8,506.64, and a civil penalty of $89,171.88.

SEC Order

SEC Press Release
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In re Yao Li (A.P. July 24, 2018, Settled)

Action against Respondent, the Vice President of Technology at a fiber optics company, in connection with alleged insider trading.  The SEC alleges that Respondent traded while in possession of material, non-public information regarding the financial performance of the company prior to its announcement of quarterly earnings.  Respondent has agreed to a five-year public officer bar and to pay disgorgement of $196,203, prejudgment interest of $23,062, and a civil penalty of $196,203.

SEC Order
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SEC v. Robert O. Carr and Katherine M. Hanratty (D. Conn. July 10, 2018, Contested)

Action against Defendants, the CEO of a payment technology company and his romantic partner, in connection with alleged insider trading.  The SEC alleges the Defendant CEO instructed his romantic partner to buy shares of the company after the company was targeted in an acquisition offer for a premium to the current share price but before the offer was made public.  The SEC also alleges that Defendants sold the purchases shares for a profit once the
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SEC v. Gene Shen (N.D. Cal. July 10, 2018, Settled)

Action against Defendant, a former principal and researcher at a biotechnology company, in connection with alleged insider trading.  The SEC alleges that Defendant purchased shares of the company while in possession of information that product had achieved a developmental milestone, which would entitle the company to receive certain payments, prior to public announcement.  The SEC also alleges that Defendant provided the material non-public information to a relative.  Defendant has agreed to pay $40,622 in disgorgement,
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