SEC Charges Former Controller of Now-Bankrupt Company with Insider Trading

The Securities and Exchange Commission today charged Edward T. Kelly, the former Controller of Aceto Corporation, with insider trading.

According to the SEC’s complaint, after Kelly retired from Aceto in March 2018, the company formally retained him as a consultant to assist in closing Aceto’s books for the quarter ending March 31, 2018. While working as a consultant, Kelly allegedly obtained non-public information about Aceto’s poor sales and earnings results and a pending impairment charge. The complaint alleges that while in possession of this information, Kelly sold all of his Aceto shares and exercised and sold his in-the-money stock options in advance of the information being released, profiting and avoiding losses of more than $85,000 in the aggregate.

via Edward T. Kelly (Release No. LR-24912; Sep. 23, 2020).