SEC Charges Scientist for Insider Trading (SEC Litigation Release No. 24221) In a Complaint filed in the United States District Court for the Western District of Washington, the SEC alleged that Anup Madan, a principal scientist with Laboratory Corporation of America Holding's Covance Genomics Laboratory, purchased 9,300 shares of Sequenom stock after learning of LabCorp's proposed acquisition of that company. Madan sold his shares for a profit of over $14,000. Without admitting or denying the allegations, Madan agreed to the entry of a final judgment permanently enjoining him from future violations of Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder. Madan will disgorge his ill-gotten gains and pay a penalty of $14,023, which is equal to the disgorgement amount.READ the FULL TEXT ComplaintSEC Charges Former Corporate Officer for Insider Trading (SEC Litigation Release No. 24222) Without admitting or denying the allegations, Robert Lozuk, former Senior Vice President at Sequenom, Inc. greed to the entry of a final judgment permanently enjoining him from future violations of Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder, and to a five-year bar prohibiting him from acting as an officer or director of a public company. Lozuk will pay a penalty of $26,643. Individual A, who provided timely and valuable assistance to the SEC's investigation, entered into a deferred prosecution agreement wherein he agreed to disgorge his ill-gotten gains of $26,643, and among other things, agreed not to violate the federal securities laws for the deferred period of two years.READ the FULL TEXT SEC Complaint and Deferred Prosecution AgreementOn a somewhat lighter note, was someone at the SEC in a rush to go on vacation or leave early for a summer Friday when tasked with coming up with a headline for this first press released? I mean, seriously, "SEC Charges Scientist . . ."? What's next? SEC charges florist? SEC charges doctor? And let's not pretend that you didn't laugh and wonder whether the SEC was charging a "mad" scientist. After all, who the hell knows what they're really doing at that Covance Genomics lab and what nefarious man-shark genetically engineered humanoid was Madan's main project. You didn't really think that Sharknado was fiction, did you? And did Madan put Hans Delbruck's brain into the monster or did he and Lozuk surreptitiously substitute Abbie Normal's when no one was watching them?
On November 6, 2017, DESGROUX, while dressed in a military battle dress uniform (BDUs) with U.S. Army rank and insignia, disembarked a private helicopter that landed at the headquarters of Statistical Analysis Systems (SAS) located in Cary, North Carolina. SAS security officers approached DESGROUX who claimed that he was a Lieutenant General in the United States Army and was authorized by the President of the United States to land the helicopter there in order to pick up a female employee of SAS for a classified debriefing at Fort Bragg, North Carolina. After the female and the defendant entered the helicopter, they flew around the area, refueled at a local airport, and returned to SAS.When questioned by law enforcement, the female stated she was unaware that DESGROUX would be picking her up via helicopter. She believed that although they were not in a romantic relationship, DESGROUX was trying to impress her by flying her around. Her understanding was she would be meeting with the defendant to assist with a design project, but she had no knowledge of DESGROUX's claims of a debriefing or joint special assignment involving the U.S. President. Investigation revealed DESGROUX had never been in the U.S. military.
secretly acquired large blocks of stock in publicly traded companies, including Virtual Piggy, Inc. (ticker symbol "VPIG"), and Red Mountain Resources, Inc. (ticker symbol "RDMP"), to manipulate the market in those stocks. As alleged, Appel acquired title to the shares in the names of nominees in order to hide his ownership block from investors and made between $3,000,000 and $4,000,000 from his scheme. Using nominee accounts was necessary because he previously lost his license and was barred by the Financial Industry Regulatory Authority ("FINRA") from selling securities or associating with any member firm.The information further alleges that Appel and his co-schemers manipulated the stock price by taking numerous actions that were hidden from investors and security regulators including: working as a paid "consultant" to recruit investors, raise capital, and get the companies running; engaging in coordinated buying and selling, which he closely monitored, to raise the share price; and preventing co-conspirators from selling their shares without his permission. The information further alleges that Appel encouraged unwitting investors to buy large blocks of stock by touting the companies' supposed impending success while, at the same time, selling off shares from his nominee accounts-sometimes to those same investors. Appel also allegedly traded on inside information that he obtained as a result of his "consulting" work for the companies, including the status of the companies' efforts to get listed on NASDAQ. As alleged, none of these facts was disclosed to the investing public in any of the public filings the company and Appel were required to make.