Material nonpublic information – the perfect gift
The gift of material nonpublic information always fits, is never returned, and can be regifted easily. It is the perfect way to say “I love you.”
The SEC has filed an action against Robert Carr and Katherine Hanratty for illegal insider trading in the shares of Heartland Payment Systems, Inc. (“Heartland”), a New Jersey-based company, ahead of its December 15, 2016 announcement that it was to be acquired.
Carr was the CEO of Heartland. The SEC characterizes Hanratty as his “romantic partner.” According to the SEC Complaint, Carr provided Hanratty with confidential information about the potential acquisition — material nonpublic information. The acquisition was expected to – and did – dramatically increase the value of Heartland’s stock.
As if the gift of material nonpublic information were not enough, the SEC Complaint alleges that Carr gave Hanratty a check for $1 million for her to use to open a brokerage account and purchase $900,000 worth of Heartland stock. Hanratty purchased the Heartland stock. After news of the acquisition of Heartland caused Heartland’s stock price to significantly increase, Hanratty sold the Heartland stock for a profit of over $250,000.
That is love!
SEC Litigation Release: https://www.sec.gov/litigation/litreleases/2018/lr24191.htm
SEC Complaint: https://www.sec.gov/litigation/complaints/2018/comp24191.pdf
Lisa Bragança recovers losses for investors all over the country, protects whistleblowers, and defends individuals and businesses in government investigations. As a Branch Chief with the SEC Division of Enforcement, Lisa conducted and supervised insider trading investigations and a wide range of investment fraud and Wall Street misconduct. Since leaving the SEC, Lisa has successfully represented individuals under investigation for insider trading.
You can reach Lisa at (847) 906-3460 or Info@SECDefenseAttorney.com. www.SECDefenseAttorney.com
Disclaimer: This information is for general purposes only and should not be interpreted to indicate a certain result will occur in your specific legal situation. The information on this website is not legal advice and does not create an attorney-client relationship.