SEC Files 2 More Settled Insider Trading Actions

SEC Files 2 More Settled Insider Trading Actions

After resolving insider trading charges against Diamondback Capital in the Dell insider trading cases, the Commission filed two more settled insider trading actions. SEC v. Shafer, Civ. Action No. 1:12-CV-00062 (S.D. Ohio Filed Jan. 24, 2012); SEC v. Ward, Civ. Action No. 1:12-CV-00061 (S.D. Ohio Filed Jan. 24, 2012).

Each case centers on the acquisition of Oak Hill Financial, Inc. by WesBanco, Inc., announced on July 20, 2007. Each involves a chain of traders initiated by an insider who learned about the transaction.

Shafer names as defendants Dale Schafer, interim CFO of Oak Hill, his cousin, Jason Gonski and the cousin's friend, Joseph Mroz. On May 14, 2007 the President of Oak Hill advised Mr. Schafer that the company was in merger negotiations with WesBanco, a West Virginia based holding company. Although Mr. Mr. Schafer understood that this was material non-public information that he had an obligation not to disclose, according to the complaint, he called Mr. Gonski the next day and discussed the matter. At the time he confided to his cousin, as he had done in the past. During the conversation Mr. Shafer stated that he was angry over the merger because it might have a negative impact on his career despite all the personal sacrifices he had made for Oak Hill.

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