SEC Says Law Firm Tech Manager Used Merger Info from 20 Clients for Insider Trading Scheme
A former information technology manager in charge of keeping electronic materials secure for an unidentified Wilmington, Del., law firm allegedly used confidential information from at least 20 clients in insider trades made by himself and his brother-in-law.
Jeffery J. Temple used the information to trade in stock of major corporations in advance of prospective mergers or acquisition-related announcements, according to a federal lawsuit filed today by the Securities and Exchange Commission.
The Wall Street Journal’s Deal Journal blog provides a link to the complaint (PDF) in the District of Delaware case.
“Since June 1, 2009, Temple traded in advance of at least 22 prospective mergers and/or acquisition related announcements involving 20 law firm clients, including four tender offers, realizing illegal profits exceeding $88,300,” the complaint states, alleging that Temple used his law firm computer for at least some of the prohibited trades.
His brother-in-law allegedly made another $94,000 from illegal insider trading.
Temple was fired by the firm in October of this year after his alleged scheme was discovered by law enforcement officials, according to Bloomberg and Reuters.
The news agencies’ calls to lawyers for Temple and his brother-in-law weren’t returned.
