On September 27, 2024, the Securities and Exchange Commission announced that it charged Texas resident Bryan Scott McMillan, who worked as an executive with a medical technology company, with insider trading for purchasing securities in advance of an announcement, in 2022, regarding Boston Scientific Corp.’s impending acquisition of Apollo Endosurgery, Inc.
According to the SEC’s complaint, McMillan obtained material nonpublic information from an unnamed domestic partner who was employed by Apollo at the time, and had been working from the residence that they both shared. The SEC alleged that McMillan violated a duty of trust and confidence owed to his domestic partner when he misappropriated highly confidential information related to Apollo’s acquisition by purchasing 20,000 shares of Apollo securities based on the MNPI, just minutes before the NASDAQ market closed. The next day, Apollo’s acquisition was publicly announced and Apollo’s stock increased by approximately 68 percent, allegedly enabling McMillan to generate more than $81,000 from the illegal trades.
The complaint, which the SEC filed in the Northern District of Texas, charged McMillan with violating section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC is seeking to permanently enjoin McMillan from further securities violations, requesting an officer-and-director bar as well as the payment of disgorgement with prejudgment interest, and a civil penalty.