U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23287 / June 16, 2015
Securities and Exchange Commission v. Dimitry Braverman and Vitaly Pupynin, Civil Action No. 14-cv-7482 (RMB) (S.D.N.Y.)
Securities and Exchange Commission V. Dimitry Braverman and Vitaly Pupynin
On June 15, 2015, the U.S. District Court for the Southern District of New York entered a consent judgment permanently restraining and enjoining Dimitry Braverman from violations of Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 promulgated thereunder. As part of the settlement, Braverman has agreed to make full disgorgement of his insider trading gains by paying $306,658.33 plus prejudgment interest of $9,336.41, and to pay a civil penalty of $204,438.89.
The SEC's Complaint against Braverman, filed on September 16, 2014 in federal district court in Manhattan, alleged that Braverman, a senior information technology professional at Wilson Sonsini Goodrich & Rosati, had access to nonpublic information stored in the firm's client-related databases and garnered more than $300,000 in illicit profits by using this information to trade in advance of merger announcements involving the firm's clients. Braverman began by using accounts in his own name to engage in insider trading, but shifted course when a lawyer at his firm was charged by the SEC and criminal authorities in an entirely separate insider trading scheme. After immediately liquidating the remaining securities that he had purchased on the basis of nonpublic information, Braverman waited about 18 months and then continued his insider trading in a brokerage account held in the name of Vitaly Pupynin, a relative living in Russia. (See Litigation Rel. No. 23086 / September 17, 2014)
Based on Braverman's agreement to make full disgorgement of the profits he generated in Pupynin's account, the Commission stipulated to the voluntary dismissal of its claims against Pupynin, who had been named as a relief defendant in this action.
In a parallel criminal proceeding, on November 13, 2014, Braverman pleaded guilty to one count of securities fraud.