SEC Charges Internal Auditor with Insider Trading in Wife's Account
The SEC charged the former director of internal audit at a health care information technology company with insider trading ahead of the release of the company's financial results, and with making more than a quarter-million dollars in illicit profits.
The SEC alleged that Steven M. Dombrowski learned confidentially through his job at Allscripts Healthcare Solutions that the company's first quarter 2012 financial results were much worse than expected and that the company would miss its earnings target. Despite a company-imposed blackout period on trading its securities, Mr. Dombrowski secretly used his wife's account to sell 1000 shares ahead of the bad news and profit on the nonpublic information. The U.S. District Attorney's Office announced a parallel criminal action against Mr. Dombrowski.