SEC Charges Connecticut Executive With Insider Trading

Wikimedia Commons

The U.S. Securities and Exchange Commission (SEC) has charged an executive at Stamford, Conn.-based electronics company, Harman International Industries, with insider trading in the company’s stock.

The SEC alleged that Dennis Wayne Hamilton made more than $130,000 in illegal profits by trading on nonpublic information he learned on the job in advance of Harman’s release of its fiscal year 2014 first-quarter earnings.

According to the SEC:

  • In his role as Harman’s vice president of tax, Hamilton reviewed Harman’s earnings and learned the company would report stronger-than-expected results for its FY14 first quarter, which spanned from July 1 to Sept. 30, 2013.
  • The day before Harman publicly released the financial results, Hamilton purchased 17,000 shares of Harman stock at a cost of more than $1.2 million. He liquidated his position when the quarterly results were publicly announced.
  • Harman’s stock price rose more than 12 percent on the news and Hamilton’s illicit trading produced one-day profits in excess of $130,000.

Sharon B. Binger, director of the Philadelphia Regional Office, commented:

We allege that Hamilton traded on details known only to company insiders and took advantage of the stock market’s fair and level playing field.

At the same time, in a parallel action the U.S. Attorney’s Office for the District of Connecticut announced criminal charges against Hamilton.

The Easy Way To Retire Early

You can retire early from the lottery, luck, or loving family member who leaves you a fortune.

But for the rest of us, there are dividends. While everyone chases big name dividend kings, they’re missing the real royalty: dividend legends.

It’s a rare class of overlooked income machines that you could buy and hold – forever.

Click here now to see two that could help you retire early, without any luck required.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.