This week, it was announced that a New York resident had been charged with tipping his brother and father with material nonpublic information about an upcoming corporate acquisition. The SEC’s complaint alleges that in 2014, Saverio J. Barbera learned that Owens & Minor would be acquiring all of the outstanding shares of Medical Action Industries.
The complaint alleges that Barbera told his father and brother that they should purchase Medical Action stock ahead of the acquisition, so they could profit from the deal. The SEC’s complaint claims that Barbera acquired the information from a close friend, who happened to be CEO and a member of the Board of Directors of Medical Action.
It is alleged that Barbera’s father and brother purchased a combined total of 22,000 shares of Medical Action common stock. The stock was then sold at a profit following the announcement of the deal. The SEC alleges that Barbera’s father and brother earned roughly $145,000 combined. Barbera has agreed to settle the SEC’s charges without admitting or denying the allegations. He will settle the charges by paying a penalty of $289,650.72. Additional details can be found here.