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Insider Trading

This archive displays posts tagged as relevant to insider trading. You may also be interested in the following pages:

Page 1 of 10

When the Deli’s Not Just a Deli

Posted  04/28/21
By Sarah “Poppy” Alexander
share certificate
A market mystery recently caught the attention of financial journalists and the public more generally: a New Jersey deli that is seemingly never open and reports minimal profits is—on paper at least—worth $100 million after issuing public shares.  The shareholders are few, and mostly in China.  The owners are local (the revered wrestling coach) and not (a father-son investor duo with a history of shady...

The SPAC bubble continues, and all the fraud concerns remain

Posted  03/12/21
By Sarah “Poppy” Alexander
market trading graph with large dip
A few months ago, we wrote about why the sudden explosion of SPACs (Special Purpose Acquisition Companies) raised serious investor fraud concerns as they risk being scammed.  Since then, the number of SPACs and their very high-profile acquisition targets has only continued to rise.  On March 10, 2021, for example, Bloomberg reported BuzzFeed was considering a SPAC merger to go public.  And none of the fraud...

A company about nothing: SPACs and fraud

Posted  10/27/20
By Sarah “Poppy” Alexander
Tablet showing trending stock
The hot retro design trend these days is not only slip dresses and tie-dye, but an once-obscure investment vehicle called a Special Purpose Acquisition Company or SPAC.  SPACs (aka “blank check” companies) are sweeping the nation as the darling of investors who wish to take a company public without the scrutiny of an IPO.

So what is a SPAC?

With due apologies to Seinfield, SPACs are companies about nothing. ...

October 15, 2020

Energy company Andeavor LLC will pay a $20 million penalty to resolve allegations that, while the company was in merger discussions with Marathon Petroleum  Corp. in 2018, it implemented a stock buyback plan without taking adequate compliance steps, including an evaluation of whether the company was in possession of material non-public information about corporate developments.  The Marathon merger, which valued Andeavor at over $150 per share, was announced one month after Andeavor completed the buyback at an average price of $97 per share.  SEC

September 30, 2020

Marcus Schulz will pay over $1 million – a $670,000 penalty and $427,000 in disgorgement – to resolve CFTC allegations that, while employed as an energy trader, he passed on confidential information to an outside broker, including information about his employers block trade orders.  The broker would then arrange to take the other side of the order at prices that allowed the broker and others involved in the scheme to make a profit on offsetting trades, which profits they shared with Schulz.  CFTC

June 10, 2020

Eight defendants - Arkadiy Dubovoy, Igor Dubovoy, Southeastern Holding and Investment Company LLC, APD Developers, Inc., Leonid Momotok, Aleksandr Garkusha, Vladislav Khalupsky, and Memelland Investments Ltd. – have settled civil claims in connection with the hacking of newswire services to steal corporate earnings releases before they were made public.  The SEC alleged that the hackers created a secret web-based location to transmit the stolen data to traders in the United States and abroad. The traders allegedly used this nonpublic information in a short window of opportunity to place illicit trades in stocks, options, and other securities, sometimes funneling a portion of their illegal profits to the hackers.  The defendants will pay disgorgement and prejudgment interest totaling more than $14 million. SEC

December 12, 2019

Two oil and gas executives have settled insider trading charges with the SEC by agreeing to pay nearly $6 million in civil penalty, disgorgement, and prejudgment interest.  The two, John Davidson and John Special, allegedly purchased shares of medical device company, Covidien PLC, upon learning non-public information about a potential merger with Medtronic PLC.  When news of the merger was officially released, investment accounts controlled by the men earned over $1 million in illicit gains.  SEC

December 9, 2019

Former U.S. Representative Christopher Collins, his son Cameron Collins, and the father of Cameron Collins’ former girlfriend, Stephen Zarsky, have settled insider trading charges with the SEC.  While serving on the board of Australian biotech company Innate Immunotherapeutics Ltd., the elder Collins learned about the impending release of negative test results for a multiple sclerosis drug.  His subsequent disclosure to his son, and his son’s disclosure to Zarsky, led the three to sell $700,000 worth of Innate shares before news hit the market.  Defendants will disgorge approximately $700,000, and have pleaded guilty to related criminal charges.  SEC

October 1, 2019

Matthew D. Webb of Houston, Texas, and his employer, broker Classic Energy LLC, will pay over $1.5 million to resolve charges that Webb used material, nonpublic information from Classic customers to make trades in Webb's proprietary trading account.  In addition, Webb failed to disclose to Classic customers that he was acting not only as a broker, but also as a trading counterparty.  Classic Energy was also found to have multiple supervision and recordkeeping failures.  CFTC

July 18, 2018

After being charged in March 2018, former Equifax executive Jun Ying has agreed to pay disgorgement and prejudgment interest totaling $125,636 to resolve charges that he engaged in insider trading ahead of exposure of Equifax's data breach. Ying's payment obligation will be offset by the $117,117 forfeiture that he has already paid in the parallel criminal case.  SEC
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