A Flordia man has become the center of allegations regarding a $1.6 million insider trading indictment case.
The FBI Miami Field Office investigated the actions of Stephen George from Parkland and his involvement in a publicly traded company. George, at the time of the investigations, was a member of the Finance Department at an as-yet-unnamed company from November 2017 until April 7, 2023.
As a result of the court proceedings, he has pleaded guilty to one count of securities fraud for his insider trading actions.
The Financial Industry Regulatory Authority’s Criminal Prosecution Assistance Group supported the FBI Miami field office’s efforts in prosecuting the case.
Florida man pleads guilty to insider trading
According to the documents presented in the Southern District of Florida, George was working in leading roles in a Boca Raton-based fitness drink company, publicly traded on the NASDAQ Stock Market.
George worked as vice president and controller in the unnamed company and was privy to material non-public information (MNPI) regarding the company’s profit and revenue performance.
On his last day of employment with the company, it was alleged that George used a workplace device to log on to the enterprise resource planning system.
He then generated an income statement displaying the company’s “financial performance for the first quarter of 2023, which George knew contained MNPI. The income statement showed that Company A’s first quarter of 2023 had greatly exceeded expectations,” said the Justice Department.
George subsequently purchased 20,000 shares of the company he had just left, their common stock, and 300 call option contracts. His previous company then reported record earnings and a significant share price increase.
“During the next trading day, May 10, 2023, George sold all 20,000 shares of common stock and 300 call option contracts, resulting in over $1.6 million in personal profits,” said the court report.
George faces a maximum penalty of twenty years in prison for his insider trading guilty plea and will be sentenced in line with U.S. Sentencing Guidelines by a federal judge at a later date.
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