SEC Announces Settlement of Insider Trading Case

The SEC announced a settlement with a "middleman" who entered into a cooperation agreement with the SEC in order to assist it in gathering evidence of an insider-trading scheme. The settlement stems from charges that the SEC brought last year against a law firm clerk and a stockbroker for alleged insider trading. According to the charges, a mutual friend was used to pass material, nonpublic information from the law firm's computer systems, which concerned clients' pending corporate transactions, to the stockholder. The illegal tips were written on napkins or Post-it notes and passed to the recipient at Grand Central Terminal.

See: Press Release.Related news: SEC Charges Individual with Facilitating Insider Trading Scheme via "Edible" Post-it Notes (with Lofchie Comment) (September 19, 2014); SEC Charges Stockbroker and Law Firm Managing Clerk in Insider Trading Scheme (March 19, 2014).