U.S. SEC Insider Trading Stock Ring

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.


  • 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.