Articles Posted in Insider trading

On April 9, 2019, the SEC (Securities and Exchange Commission) charged one of the former attorneys of SeaWorld Entertainment Inc. with insider trading. The “inside knowledge” was that the company’s revenue would be better than anticipated for the second quarter of 2018.

The allegations were than Paul B. Powers had revenue information as the company’s associate general counsel and assistant secretary. Based on the info, Powers purchased 18,000 shares of SeaWorld stock right after he received a confidential draft of the 2018 second quarter earnings, detailing strong  performance by Sea World.   Powers then sold his SeaWorld shares for approximately $65,000 in illicit profits.

“… Powers blatantly exploited his access to nonpublic information by misusing SeaWorld’s confidential revenue data to enrich himself,” said an SEC spokesman who continued.  “Investors should feel confident in the integrity of corporate officers, particularly attorneys…”

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On February 14, 2019 and February 22, 2019, respectively, A federal district court in Securities and Exchange Commission v. Walter C. Little and Andrew M. Berke, Civil Action No. 1:17-CV-03536 (S.D.N.Y., filed May 11, 2017), entered judgments against two inside traders, a former law firm partner and his neighbor.

Profits of about $1 million were made with the stolen inside info.

The SEC alleged that Walter C. Little, an attorney, viewed confidential material on his law firm’s  computer network related to about 11 deals involving law firm clients. Little then purportedly  traded and tipped his neighbor, Andrew M. Berke. The Complaint stated that the reading occurred from February 2015 to February 2016.

Former Senior Attorney at Apple Attorney Caught Insider Trading

On February 14, 2019 insider trading charges were advance against the Apple lawyer responsible for supervising insider trading at that company.    The charges were brought by the SEC.

As alleged, in house compliance attorney,  Gene Daniel Levoff (who formerly acted as Apple’s global head of corporate law and corporate secretary), was privy to insider information as to Apple’s quarterly earnings announcements. Levoff had a prime position who regularly reviewed Apple’s numbers prior to public release.

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