SEC Obtains Judgment Against Former Pharmaceutical Company CFO Who Engaged in Insider Trading
Litigation Release No. 25306 / January 13, 2022
Securities and Exchange Commission v. Douglas A. Roth, No. 2:20-cv-05368-JMA (E.D.N.Y. filed Nov. 5, 2020)
The Securities and Exchange Commission announced that it obtained a final judgment against Douglas A. Roth, the former Chief Financial Officer of Aceto Corporation, on January 11, 2022, in a previously-filed action alleging that Roth engaged in insider trading.
The SEC's complaint alleged that Roth, while working as Aceto's CFO, obtained non-public information concerning several negative developments at Aceto. The complaint further alleged that, while in possession of this confidential information, and within days of his March 31, 2018 retirement, Roth sold all of the Aceto shares that vested upon his retirement.
In a parallel criminal action brought by the U.S. Attorney's Office for the Eastern District of New York, Roth pleaded guilty on November 9, 2020, and was sentenced on July 7, 2021 to six months in prison, six months of home incarceration, one year of supervised release, a fine of $150,000, and forfeiture of $147,802.64.
The final judgment, to which Roth consented, permanently enjoins Roth from violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and bars him from serving as an officer or director of a public company. The SEC also issued an order on November 10, 2021, forthwith suspending Roth from appearing or practicing before the SEC pursuant to Rule 102(e)(2) of the SEC's Rules of Practice.
The SEC's litigation was handled by Richard Hong, Eric Kirsch, Michael Ellis, Elzbieta Wraga, and Wendy Tepperman of the New York Regional Office. The SEC appreciates the assistance of the FBI and the U.S. Attorney's Office for the Eastern District of New York.