U.S. SECURTIES AND EXCHANGE COMMISSION
Litigation Release No. 25976 / April 15, 2024
Securities and Exchange Commission v. Kevin A. Van de Grift and Gil Friedman, No. 1:23-cv-01491 (S.D.N.Y. filed Feb. 22, 2023)
SEC Obtains Final Judgment Against Former Private Equity Firm Consultant Charged with Insider Trading
The Securities and Exchange Commission announced today the entry of a final consent judgment against Gil Friedman, a former consultant for private equity firm Francisco Partners Management, L.P. Friedman agreed to settle the charges that he engaged in insider trading ahead of the April 9, 2018 public announcement that Francisco Partners had agreed to acquire payment systems company Verifone Systems, Inc.
According to the SEC’s complaint, filed in federal district court in New York, Friedman tipped his close friend, Kevin A. Van de Grift - a day-trader and licensed accountant - with material, nonpublic information concerning Francisco Partners’ potential acquisition of Verifone. The SEC alleged that based on Friedman’s tip, Van de Grift purchased 60,000 shares of Verifone stock from March 5, 2018 through March 9, 2018, and subsequently sold all of these shares the day after the acquisition announcement for a profit of approximately $300,000.
Without admitting or denying the allegations, Friedman consented to the entry of a final judgment permanently enjoining him from violating the antifraud provisions of Section 10(b) of the Securities and Exchange Act of 1934 and Rule 10b-5 thereunder, barring him from serving as an officer or director of a public company for five years, and ordering him to pay a civil penalty of $298,000. The final judgment was entered by the Court on April 5, 2024.
Friedman has also agreed to settle an administrative proceeding pursuant to Rule 102(e) of the SEC’s Rules of Practice, suspending him from appearing or practicing before the SEC as an accountant with the right to apply for reinstatement after five years.
The SEC’s litigation against Friedman was conducted by Sharan Lieberman, Michael Cates, and James McDonald and supervised by Gregory Kasper, Nicholas Heinke, and Jason Burt, all of the SEC’s Denver Regional Office. The SEC’s investigation was conducted by Michael Cates, with assistance from Daniel Konosky, and was supervised by Ian Karpel, Mr. Heinke, and Mr. Burt. The SEC acknowledges the assistance and cooperation of the Financial Industry Regulatory Authority. The SEC litigation is continuing against Van de Grift.