SEC Charges Research Analyst with Insider Trading
Commentary by Steven Lofchie
The SEC charged a research analyst with using his mother's brokerage account to engage in insider trading that utilized nonpublic information. The SEC alleged that the analyst "reaped" over $1.5 million in February 2016, in violation of Securities Exchange Act 10(b) and Rule 10b-5.
Commentary
Anyone who thinks they can purchase out-of-money options immediately before a merger and hide their million-dollar profit by booking the transactions in the account of someone who shares their last name probably didn't have much of a future as a securities analyst.