August 15, 2019

Jury finds broker liable for insider trading

On August 14, 2019, a jury in US District Court for the Northern District of Georgia found a New Jersey Securities broker liable for insider trading in violation of Sections 10(b) and 14e of the Securities Exchange Act of 1934, and Rules 10b-5 and 14e-3 thereunder.  According to the evidence presented by the Securities and Exchange Commission, Raymond J. Pirrello, Jr. received confidential nonpublic information from a tax accounting expert in advance of acquisitions of three companies, Radiant Systems, Inc., Midas, Inc., and BrightPoint, Inc.  Pirrello communicated the information to a friend, who earned over $100,000 in illicit profits, and gave $21,500 of the money to Pirrello.  Pirrello’s alleged co-conspirators have settled with the SEC.

SEC litigation release | SEC complaint