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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In re James W. Holden (A.P. July 31, 2019, Settled)

Action against Respondent, the friend of an energy company’s director, for alleged insider trading.  According to the SEC, Respondent’s friend shared material nonpublic information about the energy company’s plans for a joint venture.  The SEC alleges that Respondent then bought shares in the company prior to the announcement of the joint venture and sold them thereafter.  Respondent has agreed to pay  disgorgement of $18,527.18, prejudgment interest of $1,348.32, and a civil penalty of $18,527.18.

SEC
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In re Timothy M. Rooney, Sr. (A.P. July 26, Settled)

Action against Respondent, a former employee of a brokerage firm, for alleged insider trading.  According to the SEC, Respondent learned material nonpublic information about a luggage company’s earnings from his friend and customer.  The SEC alleges that Respondent then bought shares in the company ahead of its earnings announcement and sold them thereafter.  Respondent has agreed to pay disgorgement of $139,673, a prejudgment interest of $21,407, and a civil penalty of $715,417, and to various
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In re Balaji Sunarraj and David O’Brien (A.P. July 23, 2019)

Action against Respondents, two Texas residents, for alleged insider trading.  According to the SEC, one Respondent learned material nonpublic information about an upcoming acquisition when he overheard his brother, an attorney, discussing the acquisition on the telephone.  The SEC alleges that he then tipped the other Respondent, and that both Respondents bought stock in the target firm ahead of the acquisition’s announcement and sold it thereafter.  Respondent tipper has agreed to pay disgorgement of $12,050,
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SEC v. Mark Loman (C.D. Cal. July 18, 2019, Contested)

Action against Defendant, the former controller and vice president of a security, electronics, and healthcare company, for alleged insider trading.  According to the SEC, Defendant learned that the company would not meet its financial expectations and then made a series of options trades betting that the company’s share price would fall.

SEC Complaint

SEC Litigation Release
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SEC v. Donald G. Blackstad and Martha Patricia Bustos (S.D.N.Y. July 10, 2019, Contested)

Action against Defendants, an accountant and her friend, for alleged insider trading.  According to the SEC, Defendant accountant tipped Defendant friend with confidential information in advance of her company’s quarterly performance announcement in exchange for gifts and travel.  A parallel criminal action has been commenced against Defendants.

SEC Complaint

SEC Press Release
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In re Tory J.R. Schalkle (A.P. July 1, 2019, Settled)

Action against Respondent, a manager at a consulting firm, for alleged insider trading.  According to the SEC, Respondent purchased shares of a company for whom his firm was arranging a merger while he was in possession of material, nonpublic information.  He allegedly then sold the shares after the merger had gone through.  Respondent has agreed to pay disgorgement of $12,193, prejudgment interest of $362.58, and a civil money penalty of $12,193.

SEC Order
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SEC v. Raymond Starker (D.N.J. June 18, 2019, Settled)

Action against Defendant, who had close relationships with an executive and director at an energy company and an individual at an investment bank, for alleged insider trading.  According to the SEC, Defendant learned material nonpublic information from his acquaintances related to a planned secondary offering of the energy company’s securities.  The SEC alleges that Defendant sold shares of the company’s stock while in possession of this information and ahead of the offering’s announcement.  Defendant has
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In re David A. Altom and Gabriel V. Graven (A.P. May 29, 2019, Settled)

Action against Respondents, a senior director of health and safety at an oilfield services company and his neighbor, for alleged insider trading.  According to the SEC, Respondent director told his neighbor about an upcoming acquisition of his company before the transaction occurred.  The SEC alleges that the neighbor then traded while in possession of this material nonpublic information and tipped another unnamed trader.  Respondent director has agreed to pay a civil penalty of $85,000.  Respondent
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SEC v. Mark “Christian” Ramsey (E.D. Pa. May 21, 2019, Contested)

Action against Defendant, the friend and business partner of a former football player charged with insider trading, for alleged participation in the same insider trading scheme.  According to the SEC, Defendant received tips from a former investment banker, also previously charged by the SEC, for information related to upcoming corporate acquisitions and traded on the former football player’s behalf while in possession of that information.  Defendant has also been charged in a parallel criminal action.
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SEC v. Lloyd Schuman and Dane James (W.D. Tenn. May 9, 2019, Settled)

Action against Defendants, internal auditors at a paper company and a hospitality company, for alleged insider trading.  According to the SEC, Defendant paper company auditor learned material nonpublic information about a planned acquisition by his employer, purchased shares while in possession of that information, and tipped a relative about the upcoming acquisition.  According to the SEC, this Defendant also learned material nonpublic information from the other Defendant auditor and similarly bought shares in that company
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SEC v. Brian Fettner, et al. (S.D. Fla. May 7, 2019, Settled)

Action against Defendant, a friend of the general counsel of a public company, and Relief Defendants, the ex-wife and former girlfriend of Defendant, for alleged insider trading.  According to the SEC, Defendant viewed material nonpublic information regarding a possible acquisition while visiting the general counsel’s home and purchased stock in the target firm through Relief Defendants’ brokerage accounts while in possession of that information.  The SEC also alleges that Defendant tipped his father and another
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SEC v. Quentin Louis Wilcox (D. Ariz. Apr. 16, 2019, Settled)

Action against Defendant, a former financial manager at an electronic component company, for alleged insider trading.  According to the SEC, Defendant purchased shares while in possession of material nonpublic information about his employer’s earnings, sold the stock short, and purchased put option contracts shortly before the earnings announcement was publicized.  Defendant has agreed to pay disgorgement of $55,154.70, prejudgment interest of $3,744.83 and a civil penalty of $55,154.70.

SEC Complaint

SEC Litigation Release
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SEC v. Paul Bannon Powers (M.D. Fla. Apr. 9, 2019, Contested)

Action against Defendant, a former in-house attorney at Sea World, for alleged insider trading.  According to the SEC, Defendant purchased stock while in possession of material non-public information about his employer’s quarterly earnings, which had improved significantly after a period of decline, and sold the stock soon after the earnings were publicly released.  Defendant has been charged in a parallel criminal case.

SEC Complaint

SEC Litigation Release

SEC Press Release
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In re Tai-Cheng Yang (A.P. Apr. 5, 2019, Settled)

Action against Respondent, an engineer for a private company, for alleged insider trading.  According to the SEC, Respondent’s wife learned material nonpublic information about an upcoming acquisition from a family member and shared the information with Respondent.  The SEC alleges that Respondent bought shares in the target company while in possession of this information and sold the shares for a profit after the acquisition was publicly announced.  Respondent has agreed to pay disgorgement of $27,761.55,
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SEC v. Joseph Frank Vacante (S.D.N.Y. Feb. 21, 2019, Settled)

Action against Defendant, a former employee of a biotechnology company, for alleged insider trading.  According to the SEC, Respondent traded while in possession of material nonpublic information regarding the FDA’s recommendation that the company withdraw some of its products from FDA consideration.  Defendant has agreed to pay disgorgement of $70,827, prejudgment interest of $6,247, and a civil penalty of $70,827.

SEC Complaint

SEC Litigation Release
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