SEC v. John Femenia, et al., Case No. 3:12-cv-803 GCM (W.D. NC). On December 5, 2012, the SEC announced insider trading charges against Wells Fargo investment Banker John W. Femenia and Aaron M. Wens, Matthew Musante, Anthony Musante, Shawn Hegedus, Danielle Laurenti, Roger A. Williams, Frank M. Burgess, Jr., James A. Hayes IV, and Kenneth M. Raby. The SEC also obtained an order freezing the traders’ assets. The SEC alleges that Femenia obtained inside information about several business deals involving Wells Fargo clients. Femenia tipped his friend Hegedus. Together, Femenia and Hegedus tipped several other friends, who in turn, tipped others as well. Femenia’s tips allowed for profitable trades in the stock and options of companies being acquired as part of the business deals. The SEC also charged two companies, Coram Real Estate Holdings Inc. and GoldStar P.S., which had ties to Hegedus or Laurenti. Lastly, the SEC charged Kristine Lack and Christine Laurenti as relief defendants. The SEC’s complaint alleges that the defendants violated Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.
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