SEC Settles Insider Trading Charges Against Spouse of Corporate Insider

The Securities and Exchange Commission announced today that California resident Mahmoud Abdelkader has agreed to settle charges for insider trading in the securities of Audentes Therapeutics, Inc. before the December 2, 2019 public announcement that Audentes would be acquired by Astellas Pharma, Inc. for approximately $3 billion.

According to the SEC’s complaint, Abdelkader’s wife worked for Audentes. The SEC alleges that Abdelkader determined, based on facts he learned from his wife, that there was a high likelihood of Audentes being acquired. Using this material nonpublic information he misappropriated from his wife, Abdelkader allegedly purchased short-term, out-of-the money Audentes call options on October 17 and October 18, 2019. The SEC further alleges that when Audentes’ stock price rose by approximately 106% following the acquisition announcement, Abdelkader obtained ill-gotten gains of approximately $81,580.

Source: SEC Settles Insider Trading Charges Against Spouse of Corporate Insider