SEC Charges VP of Finance with Insider Trading
July 31, 2018
File No. 3-18618
July 31, 2018 - The Securities and Exchange Commission today announced that Fred Tinker, formerly a Vice President of Finance at San Jose, Calif.-based Synaptics, Inc., has agreed to settle charges that he traded on inside information about the potential acquisition of Synaptics by a Chinese investment group.
According to the SEC's order, Tinker learned about the potential acquisition from a senior executive. He understood that the potential acquisition was highly confidential. In July and August 2015, Tinker worked on financial projections and other due diligence tasks in connection with acquisition talks. Tinker then began purchasing, from Synaptics' San Jose office, Synaptics shares in his wife's brokerage account. In September 2015, Bloomberg reported that Synaptics had rejected an acquisition offer from a Chinese investment group, that talks were ongoing and that Synaptics might be holding out for a higher price. After this report, Synaptics' stock price increased 24%. Based on the increase in Synaptics' stock price, Tinker generated an unrealized gain of $89,172.
The SEC's order found that Tinker violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Without admitting or denying the SEC's findings, Tinker agreed to cease and desist from further violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, to pay disgorgement of $89,172 and prejudgment interest of $8,507, and to pay an $89,172 civil penalty.