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...
Former Wells Fargo trader Joseph Ruggieri beat back SEC allegations he traded health-care stocks based on tips from a stock analyst shortly before the analyst changed his analyst ratings ( In re Ruggieri, S.E.C., Admin. Proc. File No. 3-16178, 7/13/17 ).
An administrative law judge dismissed the proceedings and an evenly divided Securities and Exchange Commission allowed the ruling to stand.
According to Commissioner Michael Piwowar, the evidence didn’t establish that Ruggieri engaged in insider trading. He said that while telephone records were consistent with analyst Gregory Bolan tipping his colleague, “there also is contrary evidence.”The two men spoke almost every day during the year and a half they worked together at Wells Fargo, Piwowar said, and phone calls preceding a trade wouldn’t have been unusual. Moreover, on at least some occasions, contemporaneous email suggested that Ruggieri and Bolan discussed matters other than the ratings changes, Piwowar said.Commissioner Kara Stein said there was enough evidence to show that Ruggieri traded on inside information on at least one occasion. The Enforcement Division isn’t required to prove that he “engaged in insider trading on every possible occasion,” Stein said. Citing “the uncanny timing of Ruggieri’s profitable trades,” among other matters, she said the Enforcement Division met its burden. Stein and Piwowar, then acting chairman, were the agency’s only members after former Chairman Mary Jo White stepped down early this year. In May, former Sullivan & Cromwell attorney Jay Clayton was sworn in as White’s successor.
To contact the reporter on this story: Phyllis Diamond in Washington at email@example.com
To contact the editor responsible for this story: Seth Stern at firstname.lastname@example.org
Copyright © 2017 The Bureau of National Affairs, Inc. All Rights Reserved.
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 email@example.com.
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 firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)