SEC Charges CEO With Insider Trading in Secondary Offering of Company Stock
The SEC charged Manouchehr Moshayedi, chairman and CEO of STEC Inc. with insider trading in a secondary offering of his stock shares with knowledge of confidential information that a major customer's demand for one of its most profitable products was turning out to be less than expected. Moshayedi engaged in a fraudulent scheme to hide the truth about detrimental information that was at the time unbeknownst to the investing public, and proceeded with the sale of 9 million shares of STEC, from which he and his brother reaped gross proceeds of approximately $134 million each.
View release in full here (links externally to SEC website).