The Securities and Exchange Commission recently announced that it reached a settlement with Arizona resident David Minson to resolve insider trading charges. According to the SEC, the charges related to securities trades that he placed while in possession of material nonpublic information regarding Wonder Group, Inc.’s impending acquisition of Blue Apron Holdings, Inc.
According to the SEC, Minson purchased securities based on MNPI obtained from an immediate family member who was a senior executive at Blue Apron that had played a significant role in the Wonder-Blue Apron merger. Minson allegedly misappropriated the MNPI by purchasing Blue Apron stock without the executive’s knowledge – a purchase that, according to the SEC, breached a duty of trust and confidence owed to the executive. On September 29, 2023, the day of the announcement, Blue Apron stock increased by 130 percent of the previous day’s closing price, allegedly enabling Minson to generate illicit profits of more than $550,000 when he sold all of his shares the same day.
The SEC accused Minson of violating the antifraud provisions of the Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3(a). According to the Order, Minson agreed to cease-and-desist from further securities violations without admitting or denying the SEC’s findings. He also agreed to pay $550,842.13 in disgorgement, $41,606.34 in prejudgment interest, and a civil penalty of $550,842.13 to resolve the charges.