The US Securities and Exchange Commission has brought insider trading charges against Spanish national Jose Luis Casero Sanchez, a former senior compliance analyst working in Poland for a prominent US-based investment bank. On September 30, 2021, the US District Court for the Southern District of New York granted the SEC’s request for a temporary restraining order to freeze Sanchez’s assets, including two brokerage accounts and a digital assets account that Sanchez used to place the improper trades.
According to the complaint, Sanchez’ employment gave him access to material, nonpublic information related to numerous pending and potential transactions, including mergers, tender offers, and financings; Sanchez’ access was provided so that he could monitor the flow of information among bank employees and detect and prevent insider trading at the firm. Between September 2020 and May 2021, Sanchez allegedly abused his position of trust and misappropriated sensitive information related to at least 45 significant corporate transactions and events, resulting in more than $471,000 in illegal profits. Sanchez allegedly tried to conceal the illegal trades by placing them through US-based brokerage accounts held in the names of his mother and father, and by limiting the size of the trades.
Sanchez is charged with violating Section 17(a) of the Securities Act, Sections 10(b) and 14(e) of the Exchange Act and Rules 10b-5 and 14e-3 thereunder, and the SEC is seeking a permanent injunction, disgorgement, prejudgment interest and the payment of civil monetary penalty. Sanchez’ parents are charged as relief defendants in the action.