SEC Charges Former Bank Executive and Friend With Insider Trading Ahead of Acquisition
The Securities and Exchange Commission today charged a former bank executive in Massachusetts and his friend with insider trading in advance of the bank’s acquisition of another financial institution. The SEC alleges that Patrick O’Neill, then a senior vice president at Eastern Bank, learned through his job responsibilities that his employer was planning to acquire Wainwright Bank & Trust Company. O’Neill tipped Robert H. Bray, a fellow golfer with whom he socialized at a local country club. In the two weeks preceding a public announcement about the planned acquisition, Bray sold his shares in other stocks to accumulate funds he…
Read MoreSEC Announces Charges in Houston-Based Scheme Touting Technology to End Fracking
The Securities and Exchange Commission today announced charges against a Houston-based penny stock company and four individuals behind a pump-and-dump scheme that misled investors to believe the company was on the brink of developing revolutionary technology to enable environmentally friendly oil-and-gas production. The SEC alleges that Andrew I. Farmer orchestrated the scheme by creating a shell company called Chimera Energy, secretly obtaining control of all shares issued in an initial public offering (IPO) in late 2011, and launching an aggressive promotional campaign midway through 2012 to hype the stock to investors. Chimera Energy issued around three dozen press releases in…
Read MoreSEC Charges N.Y.-Based Brokerage Firm With Overcharging Customers in $18 Million Scheme
The Securities and Exchange Commission today charged New York-based brokerage firm Linkbrokers Derivatives LLC for unlawfully taking secret profits of more than $18 million from customers by adding hidden markups and markdowns to their trades. According to the SEC’s order instituting administrative proceedings, certain representatives on Linkbrokers’ cash equity desk defrauded customers by purporting to charge them very low commission fees, but in reality extracting fees that in some cases were more than 1,000 percent greater than represented. These brokers hid the true size of the fees they were collecting by misrepresenting the price at which they had bought or…
Read MoreSEC Charges Atlanta-Based Accountant With Insider Trading on Confidential Information From Client
The Securities and Exchange Commission today announced charges against an accounting firm partner in Atlanta for insider trading in the stock of a restaurant company based on confidential information he learned from a client on the board of directors who came to him for tax advice in advance of a tender offer announcement. SEC investigators also identified and charged three other traders who traded illegally on tips from the accountant. The traders were discovered by comparing trading records from stock exchanges with names on the accountant’s client list. The SEC alleges that Donald S. Toth disregarded his fiduciary duty to…
Read MoreRobert Keyes, Senior Officer in New York Regional Office, to Retire After Nearly 22 Years of Federal Service
The Securities and Exchange Commission today announced that Robert J. Keyes, a senior officer in the New York Regional Office, will retire at the end of this month following 22 years of federal service, including the past 18 at the SEC. Mr. Keyes has been serving as the associate regional director and chief of regional office operations in the New York office since 2010, when he was promoted to the newly created position to help improve the efficiency of the office. He has advised the regional director and other senior officers on a broad range of operational management issues including…
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