A tough week for Jonathan Hollander, a former hedge fund professional. He has settled a matter filed yesterday by the Securities and Exchange Commission (SEC) which alleged that he had engaged in insider trading on a pending takeover of the grocery chain Albertson's, LLC (ABS).
The settlement requires that the former SAC Capital Advisors LP professional, pay in excess of $220,000 to close the claim that he traded on inside information about the impending acquisition of ABS.
The insider information was allegedly obtained from one of Mr. Hollander's friends who happened to be an employee of the financial advisor selected by ABS to provide services with regard to the impending acquisition. The tippees are alleged to have been a friend and family member who, together with Hollander, secured nearly $100,000 in illegal profits.
The SEC alleged in its complaint, that Mr. Hollander bought 5,600 shares of ABS stock and others involved purchased call options over a period of several days. Then on the day ABS announced the acquisition, all shares held by the parties were sold and illegal profits gained.
United States District Judge Richard Sullivan has yet to issue final approval of this settlement. It includes the agreement that Mr. Hollander be barred "from association with a broker, dealer, investment adviser, municipal securities dealer or transfer agent with the right to reapply after three years."
The New York securities regulation and enforcement attorneys at Gusrae Kaplan Nusbaum PLLC represent broker-dealers in regulatory and enforcement matters. Our lawyers advise clients and defend industry members in matters involving a broad spectrum of issues: Market timing; Sales practice violations; NASD Rule 3070 violations; Forms U4 and U5 reporting violations; Front running; Insider trading; Market manipulation; Trading issues and many more areas of regulation and enforcement. Contact our law firm to consult with one of our attorneys.
