The United States Securities and Exchange Commission has charged Carlos Sacanell for allegedly utilizing material nonpublic information to illegally trade on Oak Street Health, Inc. (Oak Street) in advance of an announcement that CVS Health Corporation, Inc. (CVS) had agreed to acquire it. Filed in the U.S. District Court for the Eastern District of Pennsylvania, the SEC’s Complaint contends that Sacanell violated the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.
Per the SEC complaint’s allegations, Sacanell had a long-term relationship with an Oak Street senior executive who shared, in confidence, certain material, nonpublic information about the CVS – Oak Street anticipated transaction. Sacanell then, as the SEC claims in its court papers, purchased Oak Street common stock, as well as call options on the stock, based on the confidential information with which he was entrusted. Based upon these securities purchases, Sacanell amassed more Oak Street call options than any other retail investor. Once the acquisition was publicly released to the investing public, Sacanell’s trading resulted in almost $620,000 in illegal profits the SEC contends.
The SEC complaint seeks permanent injunctive relief, disgorgement of trading profits in addition to prejudgment interest, a civil penalty (typically measured by the profits made), and an officer-and-director bar.
Evidently finding the SEC’s case against Sacanell compelling and sufficiently egregious, the federal criminal authorities also brought charges predicated upon the same alleged underlying insider trading activity.
If you are under SEC investigation for insider trading, it is critical that you are represented by an experienced and seasoned insider trading lawyer who understands how the SEC investigates and prosecutes and who can devise a strategy to maximize the chances you are not charged.
David Chase is a former SEC prosecutor who previously investigated and prosecuted insider trading cases for the SEC. For over the last two decades, David has represented clients as an insider trading attorney in insider trading investigations around the nation. In many cases, he has secured successful results for his clients in which the SEC dropped its insider trading investigation without taking enforcement action. Please take a look at the “Recent Successful Results” section of his website. You may contact David toll-free at: 800-760-0912 for a free consultation or e-mail at: david@davidchaselaw.com, and can visit the Firm’s website for more information and content on insider trading at: www.davidchaselaw.com.
