SEC Brings Insider Trading Charges on MNPI Taken from Romantic Partner

The SEC sued an individual for insider trading, alleging he traded material nonpublic information ("MNPI") ahead of eight corporate announcements using confidential information taken from his then-romantic partner's laptop.

In a Complaint filed in the U.S. District Court for the District of New Jersey, the SEC alleged that during the relevant period, an individual misappropriated material nonpublic information from his romantic partner's work laptop. His partner worked at a strategic communications and investor-relations firm that served public companies. The man bought stock and options in eight companies in brokerage accounts he and his firm held. The SEC alleged that he made about $2.7 million in illicit profits.

The SEC charged the man and his company with violating the antifraud provisions of the Securities Exchange Act Section 10(b) and Rule 10b-5 and asked the court for permanent injunction, disgorgement with prejudgment interest, and civil penalties.