Exec settles insider trading case
The SEC has settled with the owner of an investor relations firm who illegally traded the stock of Manatron Inc., an information technology company.
The Securities and Exchange Commission has settled with the owner of an investor relations firm who illegally traded the stock of Manatron Inc., an information technology company.
The SEC’s complaint, which was filed in the U.S. District Court for the District of Arizona, charged Brett C. Maas, the former owner of Hayden Communications Inc. of San Diego, the investor relations firm that represented Manatron of Portage, Mich., with insider trading. He purchased shares just before Thoma Cressey Bravo, a Chicago-based private-equity firm, bought the company.
After Mr. Maas purchased 20,000 Manatron shares Jan. 14, the company issued a press release the following day saying that it would be acquired. That pushed the closing price of Manatron’s stock up 32%.
Mr. Maas sold the shares later that day, realizing a profit of $59,077.
Under the terms of the settlement, he will return his profit and will pay a financial penalty of $29,538, a payment of $88,615.
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