Securities
Mar. 12, 2024
Novel securities fraud prosecution can proceed, federal judge rules
Prosecutors have provided sufficient information to continue with insider trading case accusing former Ontrak CEO Terren Peizer of fraudulently using Rule 10b5-1 trading plans to avoid $12 million in losses, judge wrote.
U.S. prosecutors provided enough information to keep alive a novel securities fraud case against a former Santa Monica healthcare CEO on claims he operated an insider trading scheme to avoid $12 million in losses, a judge in Los Angeles ruled.
It is the first time the Department of Justice brought criminal insider trading charges solely based on an executive’s use of a trading plan rule that is designed to prevent such charges, according t...
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