The SEC charged a former employee with securities fraud. The accused, who worked at the SEC from 1998 to 2014, allegedly traded in prohibited securities without authorization and later made misrepresentations to investigators about the trades. The SEC charged the former employee with violating Section 17(a) of the Securities Act and Section 10(b) of the Securities Exchange Act by engaging in transactions involving derivatives, failing to obtain pre-clearance before trading non-prohibited securities, and failing to hold securities for the required period.
The former employee agreed to settle the charges by paying over $100,000 in fines and disgorgement and consented to permanent suspension from practicing before the SEC as an accountant. In addition, he pleaded guilty to criminal charges related to making false filings.
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