A Seattle-based therapist, Kenneth Peer, agreed to settle SEC charges of insider trading based on information he obtained from a patient during a confidential counseling session.
As alleged in the Complaint, one of Kenneth Peer's patients revealed during a counseling session that the patient's employer was soon to be acquired by another company. After learning of the impending acquisition, Mr. Peer allegedly purchased over $28,000 in his patient's employer's stock. Following the announcement of the acquisition, Mr. Peer sold the stock for a profit of over $10,000.
The SEC Complaint alleges that Mr. Peer traded on material nonpublic information, and, in obtaining the information during a counseling session, was in breach of a disclosure statement stipulating that he owed the patient a duty to maintain the confidentiality of information shared during their sessions.
The SEC charged Mr. Peer with violating Exchange Act Sections 10(b) and 14(e) and Rules 10b-5 and 14e-3. To settle the charges, Mr. Peer agreed to pay over $21,000 in penalties, disgorgement, and interest.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
