Executives Settle SEC Insider Trading Charges With Two-Time Penalties

Two executives, in unrelated cases, settled SEC charges with for their involvement in inside trading with "two-time penalties"; i.e., penalties that were twice the amount of their improper gains.

In a Commission Order and a Complaint filed in the U.S. District Court for the Eastern District of New York, the SEC stated that the executives each made trades in the stock of their respective former employers on the basis of material nonpublic information, in violation of Section 10(b) ("Regulation of the Use of manipulative and deceptive devices") of the Securities Exchange Act and SEA Rule 10b-5 ("Employment of manipulative and deceptive devices") thereunder. As a result, one of the executives made unrealized gains of $58,096 and the other executive avoided losses of $85,000.