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
Action against Respondent, a former consultant at Puma Biotechnology, Inc., for his alleged insider trading on news concerning positive trial results of the company’s drug to treat breast cancer, Neratinib, that resulted in $56,605 in illicit gains. Respondent agreed to pay disgorgement in the amount of $56,605, prejudgment interest of $5,718, and a civil penalty of $56,605.
Action against Defendant, a certified public accountant and former accounting consultant to Adaptive Medias, Inc. (“Adaptive”), who allegedly purchased 18,500 shares of Adaptive stock just six minutes after receiving a draft of a press release announcing an acquisition offer. Defendant allegedly earned $8,140.25 in illicit profits when he sold these shares following public announcement of the offer.
Action against Defendant, former CEO of fiber optics company Alliance Fiber Optics Products (“Alliance”), for allegedly generating more than $2 million in illicit profits through insider trading. The SEC alleges that Chang used secret brokerage accounts held in his family members’ names to trade in Alliance shares ahead of the release of earnings reports after attending board meetings in which confidential information was discussed. He also allegedly tipped his broker non-public information to trade ahead ... Continue Reading
Action against three individuals for alleged insider trading in connection with Intel Corporation’s acquisition of Mobileye, N.V. (“Mobileye”). The SEC filed a complaint against Defendants Lawrence F. Cluff, Jr., and Roger E. Shaoul in April. On September 13, the SEC amended the complaint to add James Shaoul as a Defendant. James Shaoul allegedly has professional and personal relationships with the founders of Mobileye and, according to the SEC, provided his brother Roger Shaoul with tips ... Continue Reading
Action against Defendant Gupta, a former auditor at PricewaterhouseCoopers LLP (“PwC”), and Pushpendra Agrawal, his cousin, for alleged insider trading. According to the SEC, Gupta learned through his work at PwC that Cavium, Inc., was planning to acquire QLogic Corporation (“QLogic”). Gupta allegedly provided this material nonpublic information to Agrawal, who purchased QLogic call options and earned a $23,785 profit. Gupta has agreed to pay a civil penalty of $23,785. Agrawal has agreed to pay ... Continue Reading
Action against former employee of Amazon.com, Inc. (“Amazon”) Brett Kennedy, his fraternity brother Defendant Maziar Rezakhani, and Rezakhani’s trading partner and adviser Defendant Sam Sadeghi for alleged insider trading. The SEC alleges that Defendant Kennedy, who was a financial analyst at Amazon, gave Rezakhani tips regarding Amazon’s financial performance prior to public announcements in exchange for $10,000. Rezakhani and Sadeghi allegedly traded based on the material nonpublic information provided by Kennedy, earning $116,000 in profits. ... Continue Reading
Action against attorney for allegedly purchasing stock based on material nonpublic information obtained through his representation of a hedge fund and hedge fund manager. Respondent allegedly became aware, through confidential attorney-client communications, when the hedge fund manager crossed the threshold for beneficial ownership reporting requirements for various publicly traded companies. Based on this information, Respondent allegedly purchased securities in those companies before filing beneficial ownership reports on behalf of the manager. Respondent has agreed to ... Continue Reading