SEC Charges Former Investment Bank Analyst with Insider Trading in Advance of Client Deals (with Lofchie Comment)

The SEC charged a former investment bank analyst with insider trading. The analyst supplied confidential information to a close friend about clients involved in impending mergers and acquisitions of technology companies. The SEC Enforcement Division's Market Abuse Unit detected the insider trading through trading data analysis tools in its Analysis and Detection Center.

Lofchie Comment: These guys were foolish not to realize that a massive volume of options trading in advance of a significant public announcement would trigger regulator's data detection tools.

See: SEC Press Release.