Cisco Worker Trades on Inside Intel, Then Rats Himself Out to the SEC
(Bloomberg) -- This might be one of the easiest insider trading cases ever for the U.S. Securities and Exchange Commission.
Charles F. Kerwin, a 41-year-old supply chain manager at Cisco Systems Inc., earned almost $95,000 last July trading stocks and options after learning that his employer was poised to acquire Acacia Communications Inc. The deal was announced July 9. Two days later Kerwin had a change of heart and self-reported his trades to securities regulators.
An SEC complaint filed Monday against Kerwin doesn’t explain why he decided to inform the regulator. An attorney representing Kerwin, who didn’t admit or deny the SEC’s findings, didn’t immediately respond to a request for comment.
Kerwin’s cooperation did lead to a less expensive penalty, according to the SEC. He has agreed to return the $94,861 he made in illicit profits and pay a $47,430 fine, the agency said.
©2020 Bloomberg L.P.