November 26, 2019

Former OSI vice president faces criminal and civil charges for insider trading

On November 21, 2019, the US filed an indictment against Mark Loman, former Vice President and Corporate Controller at OSI Systems, Inc., charging him with using confidential non-public information to trade on securities of OSI and American Science and Engineering, Inc. (ASEI). The indictment alleges that Loman learned, by virtue of his role as Corporate Controller, that OSI would fall short of its revenue forecasts in the second quarter of fiscal 2016, and that he sold short shares of OSI stock and conducted options transactions in order for his own benefit.  The indictment also alleges that Loman traded on ASEI shares after learning confidential non-public information about OSI’s impending acquisition of ASEI.  According to the allegations, Loman gained approximately $567,336 from these transactions, which he executed despite his duty not to do so, the compliance training he had been given, and the explicit prohibition on such trading during the blackout periods defined by OSI.

In July 2019, Loman was charged by the US Securities and Exchange Commission with civil violations based on the same transactions.  The SEC case is pending.