U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23780 / March 15, 2017
Securities and Exchange Commission v. Todd David Alpert, No. 17-Civ-1879 (S.D.N.Y. filed Mar. 15, 2017)
Security Professional Charged with Insider Trading
On March 15, 2017, the Securities and Exchange Commission charged a Kingston, Pennsylvania man with insider trading in the securities of H.J. Heinz Company in advance of the February 14, 2013 announcement that Heinz would be acquired by Berkshire Hathaway, Inc. and 3G Capital Partners Ltd.
The SEC's complaint, filed in federal court in New York City, alleges that Todd David Alpert, who worked as a security professional at the home of a Heinz board member, misappropriated material nonpublic information about the then-impending acquisition by purchasing Heinz stock and options before the deal was made public. The complaint specifically alleges that shortly after learning about the potential deal, Alpert breached a duty of trust and confidence by purchasing 1,000 shares of Heinz stock and 30 call options. The morning that the deal was announced, Alpert sold these Heinz securities for total profits of nearly $44,000.
The SEC's complaint charges Alpert with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5.
The SEC's investigation has been conducted by Megan M. Bergstrom and Diana K. Tani of the SEC's Market Abuse Unit and was supervised by the unit's co-chiefs, Joseph G. Sansone and Robert A. Cohen. The SEC's litigation will be led by John B. Bulgozdy and Ms. Bergstrom.