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.