May 22, 2014

The SEC charged a former director of the Long Island-based vitamin company, NBTY Inc., and others in his family circle with insider trading ahead of the company’s sale to private equity firm The Carlyle Group.  The SEC alleges that board member Glenn Cohen learned that NBTY was negotiating a sale to The Carlyle Group and tipped his three brothers and a brother’s girlfriend with the confidential information.  Craig Cohen, Marc Cohen, Steven Cohen, and Laurie Topal all traded on the inside information that Glenn Cohen provided and reaped illicit profits totaling $175,000.  The four Cohens and Topal agreed to settle the SEC’s charges by paying a total of more than $500,000.  SEC

Tagged in: Insider Trading, Securities Fraud,