Insider Trading Charges Filed Against Former Trader and Broker-Dealer Partner for $3.4 Million Earned in Illicit Profits

The Securities and Exchange Commission (SEC) has filed insider trading charges against Sean Wygovsky, a former trader of a Canadian asset management firm, and Christopher Matthaei, a former partner of a US-based broker-dealer. According to the SEC’s complaint, Wygovsky used nonpublic information he learned from his employer about upcoming mergers involving Special Purpose Acquisition Companies (SPACs) to illicit profits of more than $3.4 million. He then allegedly passed on this material nonpublic information to close friend and trading client Matthaei via encrypted messaging. Matthaei took advantage of these tips, trading on the inside information for further profits. The SEC alleges that the two men abused their positions in order to break the rules designed to protect investors and the markets. In addition to the SEC charges, Matthaei has also been criminally charged by the U.S. Attorney's Office for the District of New Jersey. The SEC is conducting an ongoing investigation into the matter and has acknowledged the assistance of federal law enforcement, the FBI, and FINRA.