Justin Cary Charged with Insider Trading
On September 21, 2017, the Securities and Exchange Commission (“SEC”) charged Justin Cary, a California-based Certified Public Accountant, with insider trading ahead of an acquisition offer for an advertising technology company.
According to the SEC’s complaint, on January 28, 2016, Justin Cary, an accounting consultant for Adaptive Medias, Inc., received an email from the company’s controller quoting the headline of a yet-to-be-issued press release announcing that the company had received an acquisition offer of $1.50 per share, at a time when its stock was trading for only $0.16 per share. The SEC further alleges that, while composing a response to the controller, Justin Cary logged on to his personal online brokerage account just six minutes after receiving the email and purchased 18,500 shares of Adaptive Medias stock. The complaint alleges that, four days later, Adaptive Medias announced the acquisition offer and, following the announcement, Adaptive Media’s share price increased 428% over the prior day, closing at $0.74 per share. According to the SEC, Cary sold all of his shares and generated $8,140.25 in illicit profits.The SEC’s complaint, filed in federal court in the Central District of California, Southern Division, charges Justin Cary with violating Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. The SEC seeks a permanent injunction, disgorgement of ill-gotten gains plus interest, a civil penalty, and an officer-and-director bar.
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 and compliance 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.
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