Security Guard to Company Board Member Settles Insider Trading Charges
Litigation Release No. 24145 / May 18, 2018
Securities and Exchange Commission v. Todd David Alpert, No. 17-Civ-1879 (S.D.N.Y. filed Mar. 15, 2017)
On May 1, 2018, a federal district court entered a consent judgment against Kingston, Pennsylvania resident Todd David Alpert, for insider trading. According to the SEC's complaint, Alpert, who worked as a security guard at the home of an H.J. Heinz Company board member, misappropriated material nonpublic information concerning the then-impending acquisition of Heinz by Berkshire Hathaway, Inc. and 3G Capital Partners Ltd. The complaint alleged that shortly after learning about the potential deal in the course of his employment, 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, February 14, 2013, Alpert sold these Heinz securities for total profits of nearly $44,000.
To settle the SEC's charges Alpert consented without admitting or denying the allegations in the complaint to entry of a judgment that: (i) permanently enjoins him from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5; (ii) orders him to pay disgorgement of his profits of $43,873 with prejudgment interest of $1,627; and (iii) orders him to pay a civil penalty of $43,873.
The SEC's investigation was conducted by Megan M. Bergstrom and Diana K. Tani of the SEC's Market Abuse Unit, and was supervised by the unit's then co-chiefs, Joseph G. Sansone and Robert A. Cohen. The SEC's litigation was led by John B. Bulgozdy and Ms. Bergstrom.
For further information, see Litigation Release No. 23780 (March 15, 2017).