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U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 23899 /August 8, 2017

Securities and Exchange Commission v. David Blaszczak, et al., No. 17-cv-03919

SEC Announces Settlement with Cooperator in Trading Scheme Involving Confidential Government Information

The Securities and Exchange Commission announced today a settlement with a former analyst at a hedge fund advisory firm in an insider trading case involving tips of material, nonpublic information about government plans to cut Medicare reimbursement rates.

Jordan Fogel, who agreed to cooperate with the SEC in its ongoing litigation against the remaining defendants for their roles in the insider trading scheme, consented to the entry of a judgment that enjoins him from violating Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. The judgment also provides that the Court will decide whether it is appropriate to order disgorgement of ill-gotten gains, prejudgment interest thereon, and/or civil penalties upon the SEC's motion.

The SEC's investigation was conducted by Ann Rosenfield, Patrick McCluskey, and Carolyn Welshhans in the Enforcement Division's Market Abuse Unit. The SEC's litigation is being led by Gregory Bockin and Cheryl Crumpton. The case was supervised by Robert A. Cohen, co-Chief of the Market Abuse Unit. The SEC appreciates the assistance of the U.S. Attorney's Office for the Southern District of New York, the Federal Bureau of Investigation, and the Department of Health and Human Services Office of Inspector General.

For additional information, see Litigation Release Number 23841.

 

https://www.sec.gov/litigation/litreleases/2017/lr23899.htm


Modified: 08/08/2017