Blog Posts Tagged With Insider Trading

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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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SEC v. Gene Daniel Levoff (D.N.J. Feb. 13, 2019, Contested)

Action against Defendant, a former senior in-house attorney, for alleged insider trading.  According to the SEC, Defendant, who was responsible for securities laws compliance at his then-employer, traded while in possession of material nonpublic information about his then-employer’s quarterly earnings announcements.  Defendant has been charged in a parallel criminal action in the District of New Jersey.

SEC Complaint

SEC Litigation Release

SEC Press Release
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In re Daniel J. Callahan (A.P. Feb. 8, 2019, Settled)

Action against Respondent, an attorney, for alleged insider trading.  According to the SEC, Respondent traded while in possession of material nonpublic information of which he learned during the course of his representation of his client, a beverage company.  Respondent has agreed to pay disgorgement of $19,386.97, prejudgment interest of $3,291.62, and a civil penalty of $19,386.97.

SEC Order

SEC Administrative Summary
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SEC v. Oleksandr Ieremenko, et al. (D.N.J. Jan. 15, 2019, Contested)

Action against Defendants and Relief Defendants, 11 individuals and two companies, for alleged hacking and insider trading. According to the SEC, Defendants hacked a newswire service and the SEC’s EDGAR system to obtain material nonpublic information on earnings announcements of public companies.  The SEC alleges that Defendants traded while in possession of this information.  The U.S. Attorney’s Office for the District of New Jersey has brought parallel criminal charges.

SEC Litigation Release

SEC Complaint

SEC
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Gupta v. United States (2d Cir. Jan. 11, 2019)

The Second Circuit rejected a collateral challenge to the 2012 insider trading conviction of Appellant, a former Goldman Sachs director.  Appellant Gupta brought a habeas motion arguing that the jury instructions delivered at his trial were invalidated by the decision in United States v. Newman, 773 F.3d 438 (2d Cir. 2014), where the Second Circuit held that tips of material nonpublic information alone are insufficient for an insider trading conviction without evidence that the
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United States v. Schulman (2d Cir. Jan. 10, 2019)

The Second Circuit upheld the 2017 insider trading conviction of Appellant, a patent attorney, rejecting his challenge to the sufficiency of the government’s evidence.  Although Appellant conceded that he disclosed information regarding a planned acquisition to a friend over dinner, he testified that he intended his comments to be a joke or brag and that he did not intend for the alleged tippee to trade while in possession of the material nonpublic information.  Appellant argued
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SEC v. Peter Cho (S.D.N.Y. Dec. 17, 2018, Settled)

Action against Defendant, a banking consultant, for alleged insider trading.  According to the SEC, Defendant learned material nonpublic information about a pending acquisition from eavesdropping on his then-fiancée, an investment banker, and purchased call options while in possession of that information.  Defendant has agreed to pay disgorgement of $251,386, prejudgment interest of $26,405, and a civil penalty of $251,386.

SEC Litigation Release 

SEC Complaint
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SEC v. Rajeshwar R. Gannamaneni, et al. (S.D.N.Y. Dec. 6, 2018, Contested)

Action against Defendants—an investment bank IT contractor, his wife, and his father—for alleged insider trading.  According to the SEC, Defendants traded while in possession of material nonpublic information about upcoming mergers, acquisitions, and tender offers, which  Defendant contractor allegedly learned during his position at the investment bank and tipped the other two Defendants.

SEC Litigation Release 

SEC Complaint 

SEC Press Release
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SEC v. James E. Hengen (D. Minn. Nov. 8, 2018, Settled)

Action against Defendant, the spouse of a human resources executive, for alleged insider trading.  According to the SEC, Defendant learned material nonpublic information about two pending acquisitions from his wife.  The SEC alleges that Defendant bought stock in each of the target firms while in possession of this information and sold the stock after the acquisition was announced.  The SEC also alleges that Defendant tipped four other individuals, who also traded while in possession of
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SEC v. Slobodan Dragojlovic (C.D. Cal. Nov. 7, 2018, Settled)

Action against Defendant, a software consultant, for alleged insider trading.  According to the SEC, Defendant learned information about a pending acquisition from his brother, an executive at the target firm.  According to the SEC, Defendant bought stock in the target firm while in possession of the material nonpublic information and sold the stock after the announcement of the acquisition.  Defendant has agreed to pay disgorgement of $20,101, prejudgment interest of $1,038, and a civil penalty
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United States v. Sean Stewart (2d Cir. Nov. 5, 2018, Contested)

The Second Circuit reversed the insider trading conviction of Defendant, a former investment banking analyst, on evidentiary grounds.  The government alleged that Defendant, his father, and his father’s friend traded while in possession of material, nonpublic information.  At trial, the United States introduced an incriminating prior statement by Defendant’s father and codefendant.  The court refused to admit an allegedly inconsistent statement made to the FBI for impeachment purposes at trial. The Second Circuit vacated Defendant’s
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SEC v. Hamad A. Ettu (E.D. Pa. Nov. 2, 2018, Contested)

Action against Defendant, an IT professional, for alleged insider trading.  According to the SEC, Defendant learned information about pending acquisitions from his friend, a former investment banker.  The SEC alleges that Defendant bought stock in the target firms while in possession of the material nonpublic information and sold the stock after the acquisitions were announced.  The SEC previously charged the Defendant’s friend and another individual in connection with the scheme.

SEC Press Release

SEC Complaint
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