Stay up-to-date with the latest developments in securities law through access to both news and all statutes and regulations. Find relevant corporate filings through a searchable EDGAR database. And...
April 14 — A New York-based research analyst was charged civilly and criminally late April 13 with trading on inside information that alternative investment manager Apollo Global Management was planning to acquire home security company ADT Corp.
Defendant John Afriyie allegedly learned about the deal when Apollo approached his investment firm, which wasn't identified, to discuss possible debt financing for the acquisition. He made $1.5 million trading on the inside information, the Securities and Exchange Commission and federal prosecutors said.
Afriyie allegedly accessed deal-related documents on his firm’s computer network, purchasing thousands of risky, out-of-the-money ADT call options in his mother’s brokerage account and selling them after the transaction was announced earlier this year. His mother, Lawrencia Afriyie, was named as a relief defendant in the SEC case.
“Insider traders should have learned by now that trying to hide their illegal activity in a relative’s account ultimately won’t work,” Jina L. Choi, director of the SEC’s San Francisco Regional Office, said in a release.
The SEC is seeking disgorgement plus prejudgment interest and civil penalties. In the criminal case, Afriyie was charged with one count of securities fraud, punishable by hefty fines and up to 20 years in prison. His lawyer in that case, public defender Amy Gallichio, declined to comment. No information was available regarding Afriyie's counsel in the civil action.
Both cases were filed in the U.S. District Court for the Southern District of New York
To contact the reporter on this story: Phyllis Diamond in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Phyllis Diamond at email@example.com
To see the SEC complaint, go to http://www.bloomberglaw.com/public/document/Securities_and_Exchange_Commisison_v_Afriyie_et_al_Docket_No_116c. To see the criminal complaint, go to http://www.bloomberglaw.com/public/document/USA_v_Afriyie_Docket_No_116mj02423_SDNY_Apr_13_2016_Court_Docket.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)