Tuesday, January 22, 2008
The SEC filed insider trading charges against a former director of San Francisco-based company OrthoClear Holdings, Inc., alleging that he netted nearly $1.5 million by trading on confidential company information. According to the SEC, Saiyed Atiq Raza was informed in confidence by OrthoClear's CEO that the company had reached a settlement of long-running litigation that would significantly benefit its primary competitor in the transparent teeth-aligner market, Santa Clara-based Align Technology. Rather than maintain the confidentiality of the information, Raza used it for his own benefit by buying Align securities before the settlement agreement became public.
Without admitting or denying the allegations, Saiyed Atiq Raza agreed to a settlement under which he will pay nearly $3 million in disgorgement and penalties, be barred from serving as an officer or director of a public company for five years and be permanently enjoined from future violations of the federal securities laws.