SEC Charges Insider with IIIegal Trading in Advance of Corporate Spinoff

ADMINISTRATIVE PROCEEDING
File No. 3-22033

August 26, 2024 - The Securities and Exchange Commission today announced settled charges against Dileep Murthy of New York, NY for insider trading in advance of the June 2021 announcement that Macquarie Infrastructure Corporation (“Macquarie Infrastructure”) had entered into an agreement to sell its Atlantic Aviation business (the “Announcement”).   

According to the SEC’s order, during the period leading up to the Announcement, Murthy worked in the investor relations department at an affiliated entity, the Macquarie Group, and learned about the sale negotiations through this role.  Between May 17, 2021 and June 4, 2021, in violation of the duties he owed his employer, Murthy bought Macquarie Infrastructure call options on the basis of this material nonpublic information.  Murthy conducted this trading in an account held in the name of another person.  When Macquarie Infrastructure’s stock price rose by approximately 10.9% following the Announcement, Murthy generated ill-gotten gains of $88,006.59.

The SEC’s order finds that Murthy violated the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.  Without admitting or denying the SEC’s findings, Murthy consented to the issuance of a cease-and-desist order and a five-year bar from acting as an officer or director of a public company, and agreed to pay disgorgement of $88,006.59, prejudgment interest of $13,711.30, and a civil penalty of $88,006.59.

The SEC’s investigation was conducted by Jordan Baker, David Austin, Joshua R. Geller, and Lindsay S. Moilanen of the Enforcement Division’s Market Abuse Unit.  This matter was supervised by Market Abuse Unit Chief Joseph G. Sansone.  The SEC appreciates the assistance of the Financial Industry Regulatory Authority.