In a Massachusetts federal court, the owner of a cannabis consultation practice was indicted for insider trading in relation to charges that he traded on nonpublic information he "misappropriated" from his wife.
The SEC noted that "on at least one occasion," the consultant's wife instructed him not to trade in her company's stock. The company's insider trading policy provided specifically that "immediate family members who reside with [company] employees" cannot trade company stock while in possession of material nonpublic information. He disregarded her instruction, which the SEC characterized as a "breach of an obligation owed to his wife arising from a relationship of trust and confidence."
In addition to the criminal charges instituted by the Massachusetts federal court, the SEC is seeking an "injunction, disgorgement of ill-gotten gains with prejudgment interest, and civil penalties."
Commentary / Steven Lofchie
Maybe he didn't "disregard" his wife's instruction. Maybe he just forgot what she said.
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