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Univ. of Toledo College of Law

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Monday, April 8, 2013

SEC Charges Former Medical Device Company Employee with Tipping Brother in Expert Networks Case

The SEC charged ThanhHa Bao, who worked in the finance department at Abaxis Inc., a medical device manufacturer, with illegally tipping confidential financial data to her brother, Tai Nguyen, who illegally traded in the company's stock and enabled his hedge fund clients to do the same.  The SEC alleges that  Nguyen's trading in advance of the company's quarterly earnings announcements generated $144,910 in illicit profits. Nguyen, who was charged by the SEC last year, also passed confidential information to clients of his equity research firm Insight Research, including hedge fund managers.  In a parallel criminal proceeding, Nguyen pleaded guilty and has been sentenced to a year and a day in prison. He also agreed to a criminal forfeiture of $400,000.

To settle the SEC's charges, Bao has agreed to pay $144,910 and be barred from serving as an officer or director of a public company for five years.

The SEC's charges stem from its ongoing investigations into expert networks that have uncovered widespread insider trading at several hedge funds and other investment advisory firms.

http://lawprofessors.typepad.com/securities/2013/04/sec-charges-former-medical-device-company-employee-with-tipping-brother-in-expert-networks-case.html

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Comments

This is simple insider trading and has absolutely nothing to do with expert networks. The SEC has been enforcing this standard type of tipper-tippee insider trading long before expert networks existed.

Posted by: Fred Caris | Apr 12, 2013 11:24:36 AM

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