The Family That Trades on Inside Information Together Goes to Jail Together (White Collar Crime Prof Blog)

Federal prosecutors and the SEC filed criminal and civil insider trading charges against a father, two of his sons, and a family friend for transactions in the securities of the company where the father was an executive and later in companies retaining the accounting firms of one son and the friend. The defendants in the criminal case, who entered guilty pleas, are Zvi Rosenthal, who was a vice president of Taro Pharmaceuticals Industries, Inc., his sons Amir and Ayal, and Amir’s childhood friend, David Heyman. The SEC suit also alleges insider trading by Oren Rosenthal, Zvi’s third son, Amir’s father-in-law, and Amir’s supervisor. Ayal worked at PricewaterhouseCoopers, and Heyman worked at Ernst & Young. They admitted tipping Amir about pending mergers before the public announcement of the transactions, and Amir in turn tipped his supervisor. (more…)