SEC Charges Connecticut Executive With Insider Trading
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.
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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.
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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.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
