The U.S. Securities and Exchange Commission recently moved to dismiss its insider trading case against Terren Peizer, the former CEO and Chairman of the board of directors of behavioral healthcare company Ontrak, Inc. According to a Joint Stipulation filed on August 7, 2026, in an exercise of discretion, the SEC believed that dismissal of the case was appropriate.
In March 2023, the SEC charged Peizer with insider trading for allegedly selling more than 600,000 shares of Ontrak stock through a Rule10b5-1 trading plan. The SEC had alleged that the trading plan was established while in possession of material nonpublic information (MNPI) regarding Ontrak’s largest customer, who was dissatisfied at the time and threating to terminate its contract with Ontrak. The SEC also alleged that Peizer formed a second trading plan just minutes after Ontrack’s chief negotiator informed him that the customer would likely terminate the contract. Six days later, the customer terminated the contract, which caused Ontrak’s stock to decline by more than 44 percent. Peizer was accused of selling almost $20 million securities through the 10b5-1 trading plans that allegedly enabled him to avoid losses of more than $12.7 million. The Department of Justice contemporaneously filed parallel criminal charges against Peizer for his alleged involvement in an insider trading scheme.
In June 2024, a federal jury found Peizer guilty of one count of securities fraud and two counts of insider trading. In June 2025, he was sentenced to 42 months in prison for his role in the scheme and ordered to pay a $5.25 million fine and forfeit more than $12.7 million. In January 2026, President Trump issued Peizer a full and unconditional pardon, excepting any fines or restitution already paid.
Joint Stipulation to Dismiss and Releases | DOJ – Victim Notification Program (Update)