Wednesday, July 23, 2014

SEC Charges Investor Relations Executive With Insider Trading While Preparing Clients’ Press Releases

The SEC charged a partner at a New York-based investor relations firm with insider trading on confidential information he learned about two clients while he helped prepare their press releases. 
The SEC alleges that the partner sold his shares in Misonix Inc. upon learning that the company was set to announce disappointing financial results.  The SEC further alleges that the partner bought stock in Clean Diesel Technologies Inc. when he learned about the company’s impending announcement of positive news, and he profited when its stock price nearly doubled.  The partner’s illicit profits and avoided losses from insider trading in both companies totaled $11,776. 
The partner, who lives in Brooklyn, N.Y., and works at Cameron Associates, agreed to settle the charges by paying disgorgement of $11,776, prejudgment interest of $1,492, and a penalty of $11,776, for a total of $25,044. 

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