Court Enters Final Judgment Against Kenneth Rampino for Insider Trading
The Securities and Exchange Commission (SEC) announced that the federal district court in Rhode Island has entered a final judgment against Kenneth Rampino, a resident of Seekonk, Massachusetts and a practicing attorney, ordering him to pay approximately $39,000 to settle allegations that he engaged in insider trading in the stock of Bancorp Rhode Island, Inc. (BankRI).
In June 2015, the SEC charged Anthony Andrade, a former member of the board of directors of BankRI, and three of his friends and close business associates, including Rampino. According to the SEC’s complaint, filed in federal court in Providence, Rhode Island, Andrade illegally tipped inside information about BankRI’s potential acquisition to the three friends and associates, each of whom traded on the inside information Andrade supplied to them, and collectively profited by over $80,000 when BankRI’s stock price significantly increased after an acquisition announcement was made public. The two other traders, Robert Kielbasa and Fred Goldwyn, agreed to settle the charges against them at the time the SEC filed its complaint.
Without admitting or denying the allegations of the complaint, Rampino consented to the entry of a final judgment, which was entered by Chief Judge William Smith of the United States District Court for the District of Rhode Island, that permanently enjoins him from violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The judgment also orders Rampino to pay $18,959, representing his trading profits, prejudgment interest of $1,802, and a civil penalty of $18,959.
The SEC’s case continues against Andrade.
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