The Securities and Exchange Commission charged the former CEO of financial-technology firm Heartland Payment Systems, Inc. with insider trading on Tuesday, saying in a grievance that he gave a romantic companion particulars about his firm’s deliberate sale to a bigger rival earlier than they turned public.
In a lawsuit filed in federal courtroom in Connecticut, the SEC accused the former government, Robert Carr, and his companion, Katherine Hanratty, of shopping for round $900,000 value of Heartland inventory in late 2015 based mostly on confidential info that it was about to be acquired by cost processor Global Payments Inc.
Carr allegedly offered Hanratty with the deal phrases and the cash to purchase Heartland shares, which finally earned them a revenue of $250,628 once they bought them after the deal closed, in accordance with the SEC.
The SEC is asking each Carr and Hanratty to disgorge their income and pay a civil financial penalty. It can also be in search of to ban Carr from serving as an officer or director of an SEC-reporting firm going ahead.
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