The SEC charged Abraham Haim a New Jersey resident and self-employed technology consultant, with insider trading in the securities of five companies based on material nonpublic information regarding potential acquisitions he misappropriated from a relative, an investment banker, who by virtue of his employment, had material nonpublic information regarding the acquisitions.
The SEC stated that Haim and the relative shared a relationship of trust and confidence. Unbeknownst to the relative, Haim allegedly surreptitiously listened to the relative’s private telephone conversations about the potential transactions, and read confidential documents, which referenced the transactions. By trading on the material nonpublic information he heard and saw, the SEC stated that Haim allegedly breached his duty of trust and confidence that he owed to the relative.
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