The SEC’s complaint alleges that Daniel of South Miami, Florida misappropriated material nonpublic information regarding the acquisition during a telephone call with his mother that occurred while his mother was at the home of Daniel’s close relative, a senior employee at Cypress. Daniel, the SEC alleges, learned during this phone call that his family member was working on urgent issues related to Cypress’s acquisition and that the acquisition would likely occur soon. After the phone call, Daniel immediately sought to purchase Cypress call options and, under false pretenses, borrowed $50,000 from his mother to fund the Cypress trades, just days before Cypress’s acquisition announcement.
‘Enforcement 40’ for 2020
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