SEC Files Settled Insider Trading Case Against Eric Rogers

SEC v. Eric D. Rogers, Case No. 13-CV-0374 (S.D.N.Y.).  On January 17, 2013, the SEC announced it filed a settled insider trading case against Eric D. Rogers.  Rogers used to be a trader for Spectrum Trading, LLC, a registered broker-dealer.  The SEC previously charged nine other defendants in connection with the insider trading scheme.  According to the SEC, Arthur Cutillo and Brien Santarlas, who used to be attorneys at the law firm Ropes & Gray, acquired inside information at their law firm about upcoming corporate transactions, including a deal involving 3Com.  Cutillo tipped the inside information to Zvi Goffer, who then tipped the inside information to his brother Emanuel. Emmanuel tipped the inside information to Rogers.  Rogers bought 3Com securities through a firm account and obtained profits of approximately $207,000.  Rogers’ personal share in the trading profits was $103,500.  Without admitting or denying the charges, Rogers has settled by agreeing to a final judgment that permanently enjoins him from violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.  The final judgment will also order disgorgement of $103,500, plus prejudgment interest of $24,872. Payment of disgorgement will be waived and a civil penalty will not be imposed because of Rogers’ financial condition.  Rogers also consented to entry of an SEC Order barring him from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization, and barring him from participating in any offering of a penny stock.

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