U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23631 / August 30, 2016
Securities and Exchange Commission v. Dennis Wayne Hamilton, Civil Action No. 3:16-cv-00192-AWT (D. Conn.)
SEC Files Amended Complaint Adding Additional Instances of Insider Trading by Executive
The Securities and Exchange Commission has filed an amended complaint against a former executive at Stamford, Conn.-based electronics company Harman International Industries, Inc.
On February 5, 2016, the SEC filed a complaint charging Dennis Wayne Hamilton with insider trading in the company's stock and making more than $130,000 in illegal profits by trading on nonpublic information he learned on the job in advance of Harman's release of its fiscal year 2014 first quarter earnings. Today the SEC filed an amended complaint alleging that Hamilton engaged in insider trading four additional times by trading in his company's securities on the basis of material nonpublic information. The amended complaint alleges that Hamilton, using Harman's nonpublic information he learned as vice president of tax, earned more than $977,000 in additional illegal profits from this other insider trading.
The amended complaint charges Hamilton with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934. The SEC seeks a permanent injunction, disgorgement of illegal trading profits plus prejudgment interest, civil monetary penalties, and an officer and director bar.
For additional information, see Press Release No. 2016-24 (Feb. 5, 2016).