SEC Charges Insiders and Public Companies with Failing to Timely Report Ownership Information

The Securities and Exchange Commission today announced charges against six corporate officers, directors, and major shareholders for failing to report their holdings and transactions in company stock on required forms. Five companies were also charged for either contributing to filing failures by their insiders or failing to disclose the delinquencies of their insiders. The charges stemmed from an SEC enforcement initiative focused on Form 4, Schedules 13D and 13G; the reports filed by corporate insiders regarding their company's stock holdings. Without admitting or denying the findings, those charged are facing civil penalties that total $1.19 million. According to the Department of Enforcement Gurbir S. Grewal, being transparent about insider trading has significant implications for investors and the fairness of the markets; many of the charged individuals deprived investors of timely information concerning transactions that totaled over $90 million. The SEC has undertaken similar initiatives in the past, and with this announcement intends to remind filers of all industries that there are consequences for not reporting these transactions in a timely manner. The investigation was conducted with the assistance of various divisions within the SEC.