August 15, 2019 / 12:56AM / By US SEC / Header Image Credit: bizjournals.com
jurors in Atlanta federal court returned a
verdict finding New Jersey securities broker Raymond J. Pirrello, Jr. liable
for insider trading in advance of three merger and acquisition transactions.
SEC's evidence at trial showed that Pirrello received highly confidential
nonpublic information about the impending acquisitions of Radiant
Systems Inc., Midas Incorporated Inc., and BrightPoint Inc.
from Thomas W. Avent, Jr., who performed tax work on each transaction as a
partner at an international accounting firm. Pirrello, in turn, tipped his
former colleague and long-time friend Lawrence J. Penna, Jr., who traded in the
securities of each of the three companies. According to evidence presented
during the trial, Penna and his family made at least $107,922 in illicit
trading profits, and shared at least $21,500 of these profits with Pirrello.
jury found Pirrello liable on all counts, finding that he violated Sections
10(b) and 14(e) of the Securities Exchange Act of 1934, and Rules 10b-5 and
and Penna each previously settled insider trading charges brought
case involved a sophisticated scheme by industry professionals to use inside
information on multiple occasions to obtain substantial illegal
profits." said Joel R. Levin, Director of the SEC's Chicago Regional
Office. "Insider trading undermines investor confidence in the integrity
of the markets and those who engage in it must be held accountable."
SEC's litigation is being conducted by John E. Birkenheier, Robert M. Moye and
Ruta G. Dudenas of the Chicago Regional Office, and Pat Huddleston of the
Atlanta Regional Office. The investigation that led to the SEC's action was
conducted by Ms. Dudenas, Mr. Moye, Amy S. Cotter, and Rebecca Hollenbeck.
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