On May 7, SEC settled in a case of insider trading worth $250k.
- Brian Fettner traded on confidential information taken from a lifelong friend.
- While a guest at his friend’s house Fettner surreptitiously viewed confidential
information re a pending corporate acquisition of G&K Services Inc. by Cintas.
- Using this information and without telling his friend, he purchased G&K stock.
- Fettner used his ex-wife and a former girlfriends accounts to conduct trades.
- After Cintas and G&K announced the merger in Aug. 2016, G&K’s stock price
jumped 17% resulting in illicit profits from Fettner’s misconduct of over $250k.
- Fettner fined $252.9k, also named as relief defendants Fettner’s ex-wife and a
former girlfriend, who each profited when their brokerage accounts being used.
- Relief defendants agreed to disgorge those profits with prejudgment interest.