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.

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