On January 24, 2025, the Securities and Exchange Commission announced that insider trading charges were settled against New York resident Kenneth Miccio in connection with the purchase of Maxar Technologies, Inc. securities, in 2022, based on material nonpublic information shared by a former financial industry analyst.
According to the SEC’s order, Miccio received MNPI regarding Maxar’s impending acquisition that originated from a financial industry analyst who worked, at the time, for an unnamed global investment bank. The SEC alleges that Miccio received the MNPI from his friend Matthew Forlano, who received the tip from his nephew Stephen Forlano, Jr., who obtained the information from Anthony Viggiano, a former financial industry analyst. Following a press release announcing Maxar’s acquisition in an all-cash transaction valued at approximately $6.4 billion, Maxar’s stock price rose by nearly 125% allegedly enabling Miccio to earn illegal profits of approximately $10,000.
The SEC charged Miccio with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Miccio consented to the entry of the order against him without admitting or denying the SEC’s findings and agreed to pay $10,023.00 in disgorgement, $1,179.55 in prejudgment interest, and a civil penalty of $10,023.00.
In 2023, Stephen Forlano, Jr. and Anthony Viggiano were charged (along with two co-defendants) for their roles in the insider trading scheme. In 2024, without admitting or denying the SEC’s findings, Matthew Forlano reached a settlement with the SEC to resolve insider charges against him. As part of the settlement, he agreed to pay disgorgement of $8,209.00, prejudgment interest of $966.08, and a civil penalty of $18,232.00. The case against Stephen Forlano, Jr. and Viggiano continues.