SEC Charges Family Member of Company Employee with Insider Trading

The SEC charged a corporate employee's family member with insider trading in advance of a tech company acquisition. According to the SEC, the individual bought shares of the company through margined accounts for a value that far exceeded that of his previous trading history. The individual was a sibling of an employee of the acquired company. The SEC charged the defendant with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. The SEC seeks a permanent injunction, disgorgement plus prejudgment interest and civil penalties against the defendant.