Blog Posts Tagged With Insider Trading

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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.  ... Continue Reading

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 ... Continue Reading

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 ... Continue Reading

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 ... Continue Reading

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 ... Continue Reading

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, ... Continue Reading

In re Michael Johnson (A.P. July 6, 2018, Settled)

Action against Respondent, a registered representative of a broker-dealer, in connection with alleged insider trading.  The SEC alleges that Respondent learned of material, nonpublic information through a relative who provided tax advice regarding a planned acquisition of a publically traded company.  The SEC further alleges that Respondent purchased shares of the target company while in possession of this information and prior to the public announcement of the acquisition.  Respondent has agreed to pay $88,699 in ... Continue Reading

SEC v. Nelson Molina (N.D. Tex. July 5, 2018, Settled)

Action against Defendant, a former investor relations executive, for alleged insider trading.  The SEC alleges that Defendant purchased shares of a company based on non-public information that its board of directors were considering a possible sale of the company.  The SEC further alleges that Defendant profited from these stock purchases when a news article mentioned that the company was exploring a sale some months later.  Defendant has agreed to pay disgorgement of $78,460 and a ... Continue Reading

SEC v. Sudhakar Reddy Bonthu (N.D. Ga. June 28, 2018, Contested)

Action against Defendant, a former employee of a consumer credit reporting agency, for alleged insider trading.  According to the SEC, Defendant obtained material nonpublic information from his employer regarding a data breach purportedly affecting a client and deduced that the agency itself was the victim of the breach.  The SEC alleges that Defendant then traded against the agency by purchasing option put contracts in the agency’s common stock and selling them after the breach was ... Continue Reading

SEC v. Pinto-Thomaz, et al. (S.D.N.Y. June 26, 2018, Contested)

Action against Defendants, a credit ratings agency employee and two of his friends, in connection with Defendant employee’s alleged tip of material nonpublic information to his friends regarding a company’s confidential acquisition plans, which Defendant learned about through his work at the ratings agency.  According to the SEC, Defendant friends bought securities before the merger was announced and sold their holdings after the announcement.

SEC Litigation Release  

SEC Complaint ... Continue Reading

SEC v. Kurt J. Bordain (D.N.J. June 12, 2018, Settled)

Action against Defendant, a certified public accountant, for allegedly trading while in possession of material nonpublic information obtained while working for a member of an oil and gas company’s board of directors.  According to the SEC, Defendant received e-mail messages indicating that the company was entering into a merger agreement in which its stock would be acquired at a premium.  The SEC alleges that, prior to the merger’s announcement, Defendant purchased out-of-the-money company call options ... Continue Reading

SEC v. Woojae (Steve) Jung (S.D.N.Y. May 31, 2018, Contested)

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.

SEC Litigation Release

Releated to Panos

Related to Kaplan ... Continue Reading

Visium Asset Management, LP (A.P. May 8, 2018, Settled)

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

SEC v. Bovorn Rungruangnavarat (N.D. Ill. May 4, 2018, Contested)

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

SEC v. David A. Zimliki and Russel P. Schiefer (M.D. Penn. May 4, 2018, Settled)

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

In re Douglas Nelson (A.P. Apr. 16, 2018, Settled)

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.

SEC Order ... Continue Reading

SEC v. Saverio J. Barbera (E.D.N.Y. Apr. 5, 2018, Settled)

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

SEC v. Charlie Jinan Chen and Shui Foon Mok (D. Mass. Apr. 5, 2018, Contested)

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

SEC v. Jun Ying (N.D. Ga. Mar. 14, 2018, Contested)

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.

SEC Litigation Release 

SEC Press Release ... Continue Reading

SEC v. Robert M. Morano (D. Or. Mar. 5, 2018, Contested)

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.

SEC ... Continue Reading

SEC v. Yang Xie (D.N.J. Feb. 28, 2018, Settled)

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.

SEC Litigation Release

SEC Complaint ... Continue Reading

SEC v. Todd M. LaVelle (M.D. Fla. Feb. 8, 2018, Settled); SEC v. Ara Chackerian (A.P. Feb. 12, 2018, Settled)

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

SEC v. One or More Unknown Traders in the Securities of Bioverativ, Inc. (S.D.N.Y Jan. 26, 2018, Contested)

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

In re Anthony P. Chiera and Jeffrey R. Belfiore (A.P. Jan. 11, 2018, Settled)

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

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