Securities Law, NYSE, NASDAQ & OTC Markets Listings & Compliance

Court Enters Final Judgment Against Michael Cain

The Securities and Exchange Commission (“SEC”) announced that on July 20, 2016, the Honorable Charles Pannell of the United States District Court for the Northern District of Georgia entered a final judgment against Michael Sean Cain. In its complaint, the SEC alleged that Cain, a registered representative, received confidential information from his friend and accountant Thomas Melvin. Specifically, the SEC alleged that Melvin had tipped Michael Cain with confidential information that Melvin misappropriated from a client who was on the board of directors at Chattem, Inc., a Tennessee based pharmaceutical company. The confidential information that Cain received related to an impending acquisition of Chattem. The SEC alleged that Cain traded based on this material non-public information.

Cain consented to the final judgment which permanently enjoins Cain from violating Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder and orders Cain to pay $36,991.20 in civil penalties.

For further information about this securities law blog  post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, by email at [email protected] or visit www.securitieslawyer101.com. This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute legal advice on any specific matter, nor does this message create an attorney-client relationship.  Please note that the prior results discussed herein do not guarantee similar outcomes.

Hamilton & Associates | Securities Lawyers
Brenda Hamilton, Securities Attorney
101 Plaza Real South, Suite 202 North
Boca Raton, Florida 33432
Telephone: (561) 416-8956
Facsimile: (561) 416-2855