David P. Hobson, a former Oppenheimer & Co. investment adviser in Providence, R.I. has pled guilty to an insider trading scheme involving a pharmaceutical company.
On June 3, 2016, the Securities and Exchange Commission charged David Hobson and his friend and client, Michael Maciocio with insider trading in the securities of deal targets being pursued by the pharmaceutical company where Maciocio worked.
The SEC alleges that one of them obtained confidential clinical and business data about other pharmaceutical firms being considered by his company for potential acquisitions and business relationships, and he used the nonpublic information to trade in their stocks.
The individual made approximately $116,000 in illegal profits trading in such pharmaceutical companies as Medivation Inc., Ardea Biosciences, and Furiex Pharmaceuticals.
The SEC further alleges that Maciocio illegally tipped his friend since childhood, stockbroker David P. Hobson, who utilized the nonpublic information to gain at least $187,000 in illicit trading profits for himself and $145,000 for his customers.
David Hobson, 47, pled guilty to one count of conspiracy to commit securities fraud and one count of securities fraud, according to the statement. Maciocio, 46, pled guilty on May 20 to one count of conspiracy to commit securities fraud, one count of conspiracy to commit wire fraud, and two counts of securities fraud, according to the statement.
According to FINRA, Hobson was registered with Oppenheimer & Co. in Providence, RI from 04/2010 – 05/2016.
For more information on insider trading see Top Ten Most Common Type of Securities Fraud.
Brokerage firms are required to adequately supervise their agents to ensure they are complying with FINRA rules and they can held responsible for any losses in a FINRA arbitration claim if it is determined that they failed to properly supervise their agent.
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The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.