Michigan attorney tipped family about pharmaceutical companies' merger, SEC says
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A Michigan attorney is accused of telling his brother and cousin about a planned but not-yet-announced merger between two pharmaceutical companies, prompting an investigation by the U.S. Securities and Exchange Commission, according to Law360.
According to three cease-and-desist orders, Venar Ayer learned about the planned merger of Y-mAbs Therapeutics Inc. and SERB Pharmaceuticals from a law firm partner whose spouse worked for SERB, then told his brother Vincent Ayar and cousin Johnathan Denha, who told an unnamed cousin about the pending deal.
“Ayar breached his duty of trust and confidence to his law firm partner by disclosing that information,” according to an SEC statement.
The brother and cousin brought stocks in violation of the anti-fraud provisions of the Securities Exchange Act, the SEC alleges, resulting in $7,800 in profits for Vincent Ayar, $25,600 for Denha and $809 for Denha’s cousin.
Venar Ayar agreed to pay a civil penalty of about $34,000 while his brother agreed to pay disgorgement of about $7,800, prejudgment interest of $275 and a civil penalty of $7,831, the SEC said. Meanwhile, Denha agreed to pay disgorgement of $25,600, prejudgment interest of $898 and a civil penalty of about $26,400, Law360 reports.
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