On January 30, 2026, the Securities and Exchange Commission announced that it reached a settlement with former day-trader and certified public accountant Kevin Van de Grift to resolve allegations that he engaged in insider trading. Van de Grift was accused by the SEC of purchasing securities in 2018 based on material nonpublic information he received from Gil Friedman, a close friend who worked as a private equity consultant for Francisco Partners Management LP at the time. According to the SEC’s complaint, Friedman shared MNPI regarding Francisco Partners’ impending plan to acquire Verifone Systems, Inc. Based on the tip, Van de Grift allegedly purchased 60,000 shares of Verifone stock in the names of the his minor children just weeks before the acquisition was announced publicly on April 9, 2018. Van de Grift sold all of his Verifone shares on the day after the announcement and allegedly generated approximately $300,000 in illicit profits.
According to the final judgment, which was filed on January 27, 2026 in the Southern District of New York, Van de Grift was permanently enjoined from violating federal securities laws and barred from serving as an officer or director of a public company for a period of five years. Without admitting or denying the SEC’s allegations, Van de Grift also agreed to pay $298,000 in disgorgement, approximately $69,000 in prejudgment interest, and a civil penalty of $298,000. In an administrative proceeding, he was also suspended from practicing as an accountant before the SEC with the right to apply for reinstatement after five years.
In February 2023, the SEC charged Van de Grift and Friedman with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder in connection with the illegal trades. In April 2024, Friedman reached a settlement that was similar to Van de Grift’s in which he agreed to be permanently enjoined from future securities violations, ordered to pay a $298,000 civil penalty, and received a five-year officer and director bar. In an administrative proceeding, he was also suspended from serving as accountant before the SEC with the right to apply for reinstatement after five years.
SEC Litigation Release | Final Judgment