SEC v. Victor Dosti and Whittier Trust Co (S.D.N.Y). On June 7, 2013, the SEC announced it filed a complaint in the Southern District of New York charging Victor Dosti and Whittier Trust Company with insider trading. According to the SEC, Whittier Trust and fund manager Dosti were involved in an insider trading scheme involving the securities of Dell, Nvidia Corporation, and Wind River Systems. The SEC alleges that Dosti used confidential, inside information obtained from employees at Dell and Nvidia to trade in before several quarterly earnings announcements. Dosti made profits and avoided losses exceeding $475,000 for Whittier Trust. Dosti also made $247,000 by trading Wind River stock based upon detailed information obtained from an Intel employee from a Whitier Trust fund manager that he supervised. The SEC charged Whittier Trust and Dosti with violating Section 10(b) of the Exchange Act and Exchange Act Rule 10b-5, and Section 17(a) of the Securities Act. Without admitting or denying the charges, Whittier Trust and Dosti agreed to settle. Whittier Trust agreed to pay disgorgement of $724,051.62 plus prejudgment interest of $75,296.00 and a penalty of $724,051.62. Dosti agreed to pay disgorgement of $77,900.00 plus prejudgment interest of $2,951.43, and a penalty of $77,900.00. Both also agreed to be permanently enjoined from future violations of the antifraud provisions of the federal securities laws.
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