The SEC announced insider trading charges against investment banker Steven McClatchey and his friend and plumber Gary Pusey. The SEC alleges that McClatchey had regular access to highly confidential nonpublic information about impending transactions being pursued for investment bank clients. McClatchey allegedly tipped Pusey on 10 different occasions ahead of public merger announcements. Pusey allegedly used the misappropriated nonpublic information to generate $76,000 in illicit trading profits. In return for the tips, Pusey provided McClatchy with free services during his bathroom remodel and paid him thousands of dollars in cash that he typically placed in McClatchey’s gym bag while at the marina where they kept their boats or which he handed to him directly in his garage. SEC
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