SEC charges ex-vice president of medical device with insider trading
Targeted News Service
The Securities and Exchange Commission yesterday filed insider trading charges against a former vice president of an Arizona medical device company for insider trading in advance of the company's earnings announcements.
The SEC's complaint, filed in the U.S. District Court for the District of New Hampshire, alleges Todd Christopher Doucette, of Hampton, New Hampshire, traded on two separate occasions in the securities of his employer, Align Technology, Inc., on the basis of confidential information he obtained as Align's Vice President of Business Transformation. According to the SEC's complaint, Doucette purchased thousands of shares of Align common stock in advance of its first quarter 2018 earnings announcement and third quarter 2020 earnings announcement while in possession of confidential information concerning the company's financial performance and operation of its Americas region. Additionally, the SEC's complaint alleges all of Doucette's trades at issue took place during blackout periods, when Doucette was expressly prohibited from trading in Align stock. As a result, Doucette allegedly realized profits of $348,689 from his trading.
Without admitting or denying the allegations in the SEC's complaint, Doucette consented to a permanent injunction that would prohibit him from violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Doucette also agreed to pay $348,689 in disgorgement, $30,793 in prejudgment interest, and a civil money penalty of $348,689. The settlement is subject to court approval.
The SEC's investigation, which is continuing, is being conducted by Jordan A. Cortez and Melika Hadziomerovic and is supervised by Eric R. Busto and Glenn Gordon, with the assistance of trial counsel Teresa Verges. The SEC thanks the Financial Industry Regulatory Authority for its assistance in this matter.