Court Enters Final Judgment Against Michael Cain

Michael Cain and Thomas Melvin Insider Trading Charges - FInal JudgmentThe 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
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Boca Raton, Florida 33432
Telephone: (561) 416-8956
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