Court Orders Robert M. Morano to Pay Insider Trading Penalty
Litigation Release No. 24467 / May 13, 2019
Securities and Exchange Commission v. Robert M. Morano, No. 3:18-cv-00386 (D. Ore.)
On May 3, 2019, the U.S. District Court for the District of Oregon entered a final judgment against Robert M. Morano ordering him to pay a $75,000 insider trading penalty, which represents approximately two times the amount of Morano's illegal trading profits.
The SEC's complaint charges Morano, a former employee of UTi Worldwide, Inc., with insider trading based on material nonpublic information he learned about the company's impending acquisition by DSV Air & Sea Holdings A/V. The SEC's complaint alleges that Morano obtained more than $38,000 in illegal profits by purchasing shares of UTi prior to the acquisition announcement.
Without admitting or denying the allegations, Morano previously consented to a judgment entered on May 16, 2018, that permanently enjoined him from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder; ordered him to pay disgorgement of $38,242 and prejudgment interest of $2,317; and reserved issues relating to a penalty for subsequent determination. The final judgment ordering the penalty concludes the litigation.