On Aug. 14, SEC announced broker found liable of insider trading.
- New Jersey securities broker Raymond J. Pirrello, Jr. found liable for insider trading.
- Jury found Pirrello liable, violated SEA S.10(b) and 14(e) and Rules 10b-5 and 14e-3.
Alleged Violations
- Pirrello received highly confidential nonpublic information as to the impending acquisitions of Radiant Systems Inc., Midas Incorporated Inc., and BrightPoint Inc.
- Thomas W. Avent, Jr., who performed tax work on each transaction as a partner at an international accounting firm provided Pirrello with this privileged information.
- Pirrello tipped Lawrence J. Penna, Jr., who was a trader in securities of the companies.
- Penna, family made $107,922 in illicit trading profits, shared $21,500 with Pirrello.
- Avent and Penna each previously settled insider trading charges brought against them.
