On April 20, 2026, the U.S. Securities and Exchange Commission reached a settlement with Rakesh Ahuja to resolve allegations that he engaged in insider trading by purchasing securities of three publicly traded companies while in possession of material nonpublic information (“MNPI”). According to the SEC, the trades were made in advance of material announcements by companies that he was researching for the investment advisory firm (“IA firm”) where he worked.
According to the SEC’s complaint, Ahuja was a senior associate for an unnamed New York-based IA firm when he obtained MNPI, including confidential clinical trial data, while researching investment opportunities for two pooled investment funds that his firm serviced. He allegedly breached his duty to the IA firm when he caused a brokerage account in the name of one of his close relatives to trade in securities of certain biopharmaceutical and biotechnology companies based on information that the IA firm agreed to keep in confidence. The improper securities trades were allegedly made “on at least four separate occasions in June 2022 and from May 2023 through July 2023.” Ahuja reportedly resigned from the firm in January 2024 after falsely claiming that he did not recognize his relative’s name on a list, compiled by FINRA, of individuals who were suspected of trading in securities based on confidential information obtained by the IA firm. According to the SEC, Ahuja generated approximately $65,000 in illegal profits from the trades.
The SEC’s complaint, which was filed in the Southern District of New York, charged Ahuja with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Ahuja reached a settlement with the SEC to resolve the charges by agreeing to be permanently enjoined from engaging in future securities law violations, without admitting or denying the SEC’s allegations. He was also enjoined from acting as or being associated with any investment adviser, broker, or dealer for a period of two years. The proposed judgment, which is subject to court approval, also ordered Ahuja to pay disgorgement of $65,404.25, prejudgment interest of $12,289.01, and a civil penalty of $65,404.25.
SEC Litigation Release | Proposed Judgment | SEC Complaint