投资者律师博客SEC Files Insider Trading Charges Involving Secondary Stock Offerings
The Securities and Exchange Commission is filinginsider trading chargesagainst four persons accused of stealing confidential data from investment banks and public company clients so they could trade prior to secondary stock offerings. The four of them allegedly made over $4.4 million in illegal trading profits. Some 15 stocks were reportedly involved. The insider trading scam purportedly went on for three years, from 6/10 to 7/13.
According to the regulator, Steven Fishoff, a former day trader, conspired with his brother-in-law Steven Costantin and friends Ronald Chernin and Paul Petrello. The four of them pretended to be portfolio managers and they allegedly persuaded investment bankers to share confidential information about secondary offerings that were going to take place. Essentially, after agreeing not to tell anyone about the offering or trade in the securities, the defendants were made privy to private data.
The defendants allegedly broke their promises not to tell others about the information, tipping one another with their insider knowledge so they could lower the issuer’s stock price. They would short the stock before the offering was made public. This allowed them to earn short sale profits after the stock price had plunged.
这些人还被指控使用他们对制药公司Biogen Idec Inc.和Sangamo Biosciences Inc.之间进行秘密会谈的机密信息。他们据称在公开宣布正面的公司新闻公告之前，他们购买了股票。
Fishoff allegedly organized the insider trading scam. He is the sole owner and president of Featherwood Capital Inc., which is a trading entity. Petrello is also an ex-day trader.
The SEC charged the four men and seven entities that they controlled with illegal insider trading, violating provisions of the Securities Exchange Act of 1933, the Securities Exchange Act 1934, and Rule 105 of Regulation M of the Exchange Act related to short sales made prior to public securities offerings. Meantime, a parallel criminal case was filed against the four men, who were arrested.
新泽西州美国检察官保罗·菲什曼（Paul Fishman）将他们所谓的不当行为描述为多年内幕交易骗局。每个被告都被指控串谋实施证券欺诈。bob200体育Fishoff还被指控犯有多项证券欺诈罪。bob200体育康斯坦丁，佩特雷洛和切尔宁面临较少的数量。
The conspiracy charge comes with a five-year maximum prison term and either a $250K fine or two times times the aggregate gain of the defendants or loss of the victims. Each charge for securities fraud has a 20-year maximum prison sentence plus a fine of $5M.
Ourbob200体育证券律师事务所is here to help investors of securities fraud recover their losses. Even when the government has brought a civil and/or criminal case against wrongdoers, this doesn’t mean that investors who were harmed will get all or even any of their money back. That’s why you need experienced legal representation advocating on your behalf and fighting for your lost funds.
Four People Arrested and Charged in Cross-Country Insider Trading Scheme, FBI, June 3, 2015