Beginning Next Week: InsideCounsel will become part of Corporate Counsel. Bringing these two industry-leading websites together will now give you comprehensive coverage of the full spectrum of issues affecting today's General Counsel at companies of all sizes. You will continue to receive expert analysis on key issues including corporate litigation, labor developments, tech initiatives and intellectual property, as well as Women, Influence & Power in Law (WIPL) professional development content. Plus we'll be serving all ALM legal publications from one interconnected platform, powered by Law.com, giving you easy access to additional relevant content from other InsideCounsel sister publications.

To prevent a disruption in service, you will be automatically redirected to the new site next week. Thank you for being a valued InsideCounsel reader!

X

SEC sues ex-Ernst & Young manager for insider trading

Allegations result of illegal profits made from the worker’s purchase of Activision call options

The sheriff is back in town. The Securities and Exchange Commission (SEC), fresh off filing a record number of cases in the 2011 fiscal year, Friday leveled a lawsuit at CPA Mark Konyndyk, formerly a manager at Ernst & Young (E&Y), for insider trading.

Konyndyk, previously a manager in E&Y’s Transaction Advisory Services Group, allegedly made a $9,725 profit purchasing Activision Inc. call options.

Because of his work, he knew Activision was expected to merge with E&Y client Vivendi S.A., and both prior to and after his departure from E&Y, Konyndyk purchased options. He then sold the options shortly after the deal was announced.

The SEC seeks disgorgement of the $9,725, plus $1,789.28 in prejudgment interest, as well as a civil penalty.

Without confirming or denying the allegations, Konyndyk already has agreed to settle the SEC’s suit.

For more, check the SEC’s website.

Join the Conversation

Advertisement. Closing in 15 seconds.