Articles Tagged with insidertrading

The U.S. Securities and Exchange Commission has charged a former SeaWorld lawyer with fraud for alleged insider trading. The Complain says that former SeaWorld Parks & Entertainment Inc. associate general counsel Paul Powers used confidential information that the company was set to exceed analysts’ financial performance  to make  $65,000 in alleged “illicit profits.” The U.S. Department of Justice announced parallel criminal charges against Powers on Tuesday. Powers received a draft of SeaWorld’s earnings release Aug. 1, 2018. The following day, he allegedly purchased 18,000 shares of company stock. When SeaWorld publicly released its earnings , the company’s stock rose 17 percent—and Powers sold all his shares.

The Orlando-based marine animal amusement park terminated Powers in October over the alleged insider trading, according to the SEC’s complaint.

“At the time of his trading, defendant knew his trading was in breach of SeaWorld’s trading policy, knew his trading was in breach of duty of trust and confidence that he owed to SeaWorld and its shareholders, and knowingly and willfully breached the trading policy and his duty by trading in securities issued by SeaWorld while in possession of material and confidential information,” the SEC alleged in its complaint.

insider-trading-guys-300x200The Securities and Exchange Commission (SEC) has charged four men  for alleged involvement in an insider trading scheme that used confidential government information regarding Medicare reimbursements From the Centers for Medicare and Medicaid Services (CMS). Christopher Worrall, an employee at (CMS), allegedly gave confidential information to David Blaszczak, a former co-worker who later worked as a political intelligence analyst.

Worrall allegedly told Blaszczak three different times about pending CMS reimbursement decisions that could affect stock prices. Prosecutors allege that Blaszczak passed that information on to two hedge fund analysts who paid him as a consultant, Theodore Huber and Jordan Foge, who made $3.9 million from the insider trades.Mr. Blaszczak, a former employee at the agency and founder of Precipio Health Strategies, was accused of pumping a friend at the agency for market-moving information that he passed to his clients at Deerfield, an unsealed indictment said.In his interactions with the hedge fund partners, Mr. Blaszczak bragged about his access to the inside information. In an email message, he said his analysis differed from that of one of his competitors because that competitor “doesn’t know anyone at cms. His guesses are just wild random guesses,” according to a separate complaint filed by the SEC.Mr. Blaszczak  passed the information to his hedge fund clients, sometimes within minutes of the communications, prosecutors said.

The information involved tips about potential changes in government policy and regulations for things such as radiation therapy and kidney dialysis and how these policies would affect publicly traded companies.