SEC Charges Visiting Attorney With Insider Trading

The Securities and Exchange Commission has filed insider trading charges against Romero Cabral da Costa Neto for using confidential information obtained while working at a global law firm to purchase stock in biopharmaceutical company Swedish Orphan Biovitrum AB and then reselling the shares when an acquisition announcement was made. According to the SEC’s complaint, on May 9th, 2023, prior to the acquisition announcement, Costa bought more than 10,000 shares of CTIC, the company being acquired. On the day of the announcement, Costa sold those shares and earned a profit of more than $42,000. The SEC is seeking injunctive relief, plus disgorgement with prejudgment interest, and civil penalties. Additionally, the U.S. Attorney's Office has announced parallel criminal charges against Costa for his alleged insider trading. The SEC's investigation was conducted by Scott A. Thompson, Nicholas P. Grippo, and John Rymas of the Philadelphia Regional Office and Kara Sweet and Gregory R. Bockin of the Market Abuse Unit’s Analysis and Detection Center. The SEC has thanked the U.S. Attorney's Office and the FBI for their assistance and noted that the law firm involved is cooperating with the investigation.