Press Release SEC Charges Investor Relations Executive With Insider Trading While Pr

[dealmaker]

Press Release
SEC Charges Investor Relations Executive With Insider Trading While Preparing Clients’ Press Releases
FOR IMMEDIATE RELEASE
2014-142
Washington D.C., July 22, 2014 —

The Securities and Exchange Commission today charged a partner at a New York-based investor relations firm with insider trading on confidential information he learned about two clients while he helped prepare their press releases.

The SEC alleges that Kevin McGrath sold his shares in Misonix Inc. upon learning that the company was set to announce disappointing financial results. The SEC further alleges that McGrath bought stock in Clean Diesel Technologies Inc. when he learned about the company’s impending announcement of positive news, and he profited when its stock price nearly doubled. McGrath’s illicit profits and avoided losses from insider trading in both companies totaled $11,776.

McGrath, who lives in Brooklyn, N.Y., and works at Cameron Associates, agreed to settle the charges by paying disgorgement of $11,776, prejudgment interest of $1,492, and a penalty of $11,776, for a total of $25,044.






http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370542337613#.U856nVY79tI

 

[Spearhead]

McGrath, who lives in Brooklyn, N.Y., and works at Cameron Associates, agreed to settle the charges by paying disgorgement of $11,776, prejudgment interest of $1,492, and a penalty of $11,776, for a total of $25,044.

Penalty for this kind of stuff needs to be MUCH MUCH higher. This does NOTHING to discourage this kind of crime.