Exec Settles Insider Trading Case
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WASHINGTON (AP) _ A New Jersey man accused of improperly selling shares in the pharmaceutical services company he helped run will pay $533,686 to settle a case of insider trading brought by the Securities and Exchange Commission.
SEC officials on Tuesday said they filed and simultaneously settled insider trading charges against Michael W. Foti, 47, of Wayne, N.J., formerly the chief financial officer of Boron LePore. Foti was also a consultant and member of the company’s executive committee.
The SEC said Foti sold company stock on Feb. 2-3, 1999, after learning that Boron LePore was having financial troubles after losing its largest client, Glaxo Welcome. After learning that Boron LePore’s earnings wouldn’t meet analysts’ expectations, he sold 20,900 shares at $30 to $31 per share. On Feb. 4, the company announced its fourth-quarter earnings and said it was uncertain about future earnings.
By Feb. 5, Boron LePore shares dropped to $17.50.
The SEC said Foti avoided losing at least $244,985 with the trade.