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…”
Powers was charged with fraud by the SEC, in Federal Court in Florida. The SEC’s complaint, filed in federal district court in Orlando, Florida, charges Powers with fraud. The suit was settled with a injunctive relief and disgorgement of profits. Powers was also criminally charged.
Anthony M. Abraham, Esq., PC is experienced in churning, unauthorized trading claims and stock market fraud claims. If you suspect that your account has been manipulated through fraud or churned, please call us Toll Free at 1-877-430-4877 for a Free Consultation or email us at Anthony@Abrahamattorneys.com