The Securities and Exchange Commission charged the former Chief Financial Officer of a medical diagnostics company and his son for insider trading in 2020 in advance of the announcement of a newly signed distribution deal for an FDA-authorized COVID-19 serology antibody test. The defendants have agreed to settle the charges under terms that would require them to pay a total of over $200,000.

According to the SEC's complaint, filed in federal court in Massachusetts, Carl Iberger, a resident of Massachusetts, provided his son Timothy Iberger, also a resident of Massachusetts, and another individual with confidential information about an agreement whereby Connecticut-based medical diagnostics company, Precipio, Inc. would distribute a COVID-19 serology antibody test that had received Emergency Use Authorization from the U.S. Food and Drug Administration. The complaint alleged that Carl Iberger was at the time the CFO of Precipio and learned this confidential information through his position as CFO. According to the complaint, on July 30, 2020, the company announced the agreement and Precipio's stock price rose substantially. Allegedly, the day before the announcement, Timothy Iberger purchased 25,000 shares of Precipio stock and the other individual tipped by Carl Iberger purchased 450 shares of Precipio stock, and both traders profited when the company's stock price increased as a result of the COVID-19 test announcement.

Without admitting or denying the SEC's allegations, the Ibergers consented to the entry of judgments that permanently enjoin each of them from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The judgment against Timothy Iberger will order him to disgorge $68,350, representing his trading profits, $3,305 in pre-judgment interest, and pay a $68,350 civil penalty. The judgment against Carl Iberger will order him to pay a civil penalty of $69,223, an amount equal to the trading profits of Timothy Iberger and the other individual tipped by Carl Iberger. Carl Iberger also consented to the entry of a judgment barring him from serving as an officer or director of a public company for five years. The settlements are subject to court approval.

The SEC's investigation was conducted by Xinyue Angela Lin, Richard Harper, and Paul G. Block of the Boston Regional Office.  The SEC appreciates the assistance of the Financial Industry Regulatory Authority (FINRA).