U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 25836 / September 19, 2023
Securities and Exchange Commission v. Robert Del Prete., No. 3:23-cv-20452 (D.N.J. filed Sept. 18, 2023)
SEC Charges Former SPAC Accounting Consultant with Insider Trading
The Securities and Exchange Commission today charged Robert Del Prete with insider trading in the shares of HighCape Capital Acquisition Corp. ("HighCape"), a special purpose acquisition company, on the basis of material non-public information relating to its merger with Quantum-Si Incorporated ("QSI").
According to the SEC's complaint, Del Prete, an accounting consultant to HighCape, was present at HighCape's board meetings on January 27 and February 17, 2021 at which the planned merger with QSI was discussed. The complaint alleges that Del Prete, who had agreed to keep HighCape's proprietary information confidential, bought shares of HighCape on February 17, 2021, less than an hour after attending the board meeting that day. The complaint further alleges that, within hours of HighCape's February 18, 2021 press release announcing the deal, Del Prete liquidated his position, realizing an approximate one-hundred percent profit of $60,170 from his illegal trading. According to the complaint, when later questioned about his trades, Del Prete falsely reported to HighCape's Chief Financial Officer that he was not aware of the planned merger before the press release, although the two had been working on various aspects of the deal from at least January 27, 2021.
The SEC's complaint, filed in the U.S. District Court for the District of New Jersey, charged Del Prete with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Del Prete, without admitting or denying the allegations, has consented to the entry of a judgment permanently enjoining him from violating Section 10(b) of the Exchange Act and Rule 10b-5 thereunder and barring him from acting as an officer or director of a public company. Del Prete also agreed to pay disgorgement, prejudgment interest and a civil money penalty, in amounts to be determined by the court at a later date. The proposed settlement is subject to court approval.
In a parallel action, the U.S. Attorney's Office for the District of New Jersey filed criminal charges against Del Prete.
The SEC's investigation was conducted by Ibrahim Sajalieu Bah of the New York Regional Office. The investigation was supervised by Celeste Chase and Thomas P. Smith, Jr. The SEC appreciates the assistance of the U.S. Attorney's Office for the District of New Jersey, the Federal Bureau of Investigation, and the Financial Industry Regulatory Authority.