SEC Charges Investor Relations Firm Executive with Insider Trading

The SEC charged a director of market intelligence at an investor relations firm with insider trading. The allegations concern trading on information contained in unpublished news announcements of over a dozen of the firm's clients. According to the SEC complaint, forensic analysis of the director's work computers revealed that he had repeatedly accessed the clients' draft press releases prior to public announcements, routinely purchased stock or call options in advance of favorable news, and sold short or bought put options ahead of unfavorable news.

See: SEC Complaint; SEC Press Release. Related news: SEC Charges Investor Relations Executive with Insider Trading While Preparing Clients' Press Releases (July 22, 2014). See also: Insider Trading Specialty Page (available to Cabinet subscribers only).