On August 11, 2025, the Securities and Exchange Commission announced that Bruce Cameron Conway, a resident of Dallas, Texas, was charged in the Northern District of Texas with insider trading. The SEC reported that the charges relate to Conway’s purchase of Cancer Genetics, Inc. securities before the company publicly announced its intention to merge with an unnamed biotechnology company.
According to the SEC’s complaint, Conway learned from his investment advisor about a possible investment in a privately-held biotechnology company. After signing an investment advisory agreement that included confidentiality terms, Conway learned that the private biotech company would soon merge with an unidentified NASDAQ-traded public company. Within a week, Conway allegedly obtained material nonpublic information from an employee of the investment advisor that the public company was Cancer Genetics, Inc. (“CGIX”). On July 22, 2020, the same day that he finalized his purchase of convertible notes in the private biotech company, Conway allegedly began purchasing CGIX shares using three accounts in his name and twelve other Conway family-associated accounts, including accounts belonging to his wife, daughter and son. When the merger was publicly announced on August 24, 2020, CGIX stock allegedly increased by 215 percent from the previous day’s closing price, enabling all fifteen accounts to collectively generate approximately $160,000 in illicit profits, according to the SEC.
Conway is charged with violating the antifraud provision of section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. In addition to injunctive relief, the SEC is seeking civil penalties, disgorgement and prejudgment interest.