On Dec. 11, SEC charged stock trader in $1mn insider trading scheme.
- Joseph Spera allegedly stole confidential information from other firms and clients.
Alleged Violations
- Spera and ex-colleagues, used information, to trade ahead of secondary offerings.
- Trading ring posed as portfolio managers, induce other firms to share information.
- To bring them ''over the wall'', and share nonpublic details on secondary offerings.
- Agreed not to disclose information to others, or trade before offerings announced.
- However, violated agreements and tipped each other with confidential information.
Sanctions
- Defendant tipped others enabling to trade for profit in pre- public announcements.
- Four others previously charged by SEC, DoJ with insider trading in parallel actions.
- In total, insider trading by Spera and the others generated approximately $5.5mn.
- Including the trades based on nonpublic information on a pharmaceutical company.
