This week, it was announced that the Securities and Exchange Commission obtained a final judgment against a Watertown, Massachusetts real estate developer after he was charged with insider trading. The defendant was accused of insider trading regarding Wainwright Bank & Trust Company stock. The final judgment was entered on October 25 2017.
It permanently enjoins Robert H. Bray from violating certain Rules in the future and orders him liable for disgorgement of $299,742. On August 18, 2014, SEC charged Bray and J. Patrick O’Neill with insider trading. It was alleged that O’Neill learned that his former employer, Eastern Bank Corp., was going to acquire Wainwright.
It was alleged that the defendant then tripped off Bray, who was a friend and fellow golfer. The pair associated frequently at the local country club. The complaint alleged that Bray liquidated shares in other stocks to obtain funds he used to acquire Wainwright securities.
After the announcement was made public, Wainwright’s stock nearly doubled. Then, Bray sold all of his shares during the next few months. That resulted in nearly $300,000 in illicit profits. Both defendants were criminally charged in a parallel criminal case. O’Neill ultimately pled guilty. Bray was found guilty by a jury. He was sentenced to two years in prison. Additional details can be found here.