SEC Pirrello Liable Insider Trading

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.