December 29, 2020

SEC charges New York man with insider trading

The US Securities and Exchange Commission has charged Jason Peltz with insider trading in violation of Section 10(b) of the Securities Exchange Act of 1934 (15 USC § 78j(b)) and Rule 10b-5 thereunder (17 CFR § 240.10b-5).  According to the complaint, Peltz obtained from an insider material non-public information about the anticipated acquisition of a chemical company, Ferro Corp.  The SEC alleges that after obtaining the inside information from a close friend and member of the Ferro Board of Directors, Peltz purchased Ferro stock using brokerage accounts not registered to his own name, and tipped five other individuals to buy Ferro securities as well, resulting in a large profit for the seven brokerage accounts following public announcement of the acquisition.  According to the allegations, Peltz later caused nearly $1 million to be transferred to a company controlled by the Ferro insider from whom Peltz received the initial tip.

SEC litigation release | Complaint