The SEC charged Michael J. Fefferman, senior director of information technology at Ardea Biosciences Inc, and his brother-in-law Chad E. Wiegand with insider trading. Ardea Biosciences was eventually sold to AstraZeneca PLC (NYSE: AZN). Wiegand, a stockbroker, purchased Ardea and tipped fellow stockbroker Akis C. Eracleous off about the deal. The alleged insider trading ring amassed $530K in illegal profits. “As a corporate insider, Fefferman breached his duty to Ardea’s shareholders by tipping confidential information about significant corporate events before they were announced,” said Sharon B. Binger, Director of the SEC’s Philadelphia Regional Office. All three have settled with the SEC.
The SEC also charged the following people with various unrelated forms of securities and/or wire fraud:
- Frederic Elm f/k/a Frederic Elmaleh, 45 resides in Fort Lauderdale, Florida. AKA, Elm Tree Investment Advisors, LLC, 45, Ponzi-like payments. Sanctions have been ordered.
- Robert H. Medhus is a 67 year old resident of Jamestown, North Dakota - 13 counts of securities fraud, sentenced to serve ten years of incarceration.
- DeVon J. Carlson, age 55 is a resident of Shawnee, Kansas, two counts of securities fraud, sentenced to serve 32 months of incarceration and ordered to pay restitution in the amount of $231,078.
- Brian J. Schuster, age 41, is a resident of Ashland, Nebraska, four counts of securities fraud, sentenced to serve between 80 months and 16 years of incarceration.
- Jason Matthew Pennington age 43, is a resident of El Reno, Oklahoma, charged with wire fraud, sentenced to serve 42 months of incarceration.
- Rebecca L. Engle, age 61, is a resident of Green Valley, Arizona, Engle pled no contest to two counts of securities fraud, sentenced to serve between three and six years of incarceration.
- The ELIV Group, LLC and Scott Valente, Valente is 57 years old and is a resident of East Greenbush, New York, fraudulently lured approximately eighty individual investors, sanctions have been imposed.
- Clinton D. Fraley, age 38 is a resident of Cañon City, Colorado, one count of securities fraud in violation, sentenced to serve 12 years of incarceration and ordered to pay restitution in the amount of $617,710.