July 18, 2019

Licensed CPA and former company controller charged with insider trading

On July 18, 2019, the Securities and Exchange Commission filed a complaint against Mark Loman, former Controller and Vice President of Finance at OSI Systems, Inc., alleging that Loman secretly used material non-public information acquired in his job to trade securities, including OSI securities, in violation of Sections 21(d) and 21A of the Securities Exchange Act of 1934, 15 USC §§ 78u(d) and
78u-1.   According to the complaint, Loman realized over $300,000 in profits by closing out his OSI option trades in advance of the company’s public announcement of disappointing quarterly financial results that resulted in a 35% drop in share prices in January 2016.  The complaint also alleges that Loman profited from trading on material non-public information about other companies, including American Science and Engineering, Inc. in advance of that company’s acquisition by OSI in June 2016.  The SEC alleges that Loman profited by more than $400,000 from the illegal trades.

SEC litigation release | Complaint