SEC Obtains Partial Summary Judgment Ruling On Insider Trading
<p>There seems to be little doubt that the current administration in Washington is impacting the SEC as well as many other government offices and agencies. While in theory the Commission is an independent regulatory agency, the recent testimony of its Chair seemed to leave little doubt that he was following a path created by the President. At the same time core matters like investigating and prosecuting insider trading should not be impacted by the political matters that swirl about the capitol as illustrated by its most recent insider trading case. See SEC v. Brewer, Civil Action No. 1:20 -cv-06175 (S.D.N.Y.).</p>
<p>Defendant Jack Brewer was the CEO and portfolio manager of registered investment adviser, Brewer Capital Management. He was also the CEO, president and president and owner of a related consulting firm, Brewer Group, Inc. </p>
<p>Defendant Brewer is alleged to have obtained inside information about the plans of COPsync Inc., a microcap company that operated a communication network for law enforcement officials. That firm planned to do a stock offering. Mr. Brewer participated in that offering, providing consulting services. The offering contained a clause that precluded Mr. Brewer from trading in the shares of that firm. The agreement also required him to maintain the confidentiality of the offering and not use information about the transaction for his benefit. </p>
<p>Nevertheless, Mr. Brewer sold over $100,000 of COPsync stock in advance of an announcement that caused its share price to fall. As a result, he had a profit of more than $35,000 than he would have otherwise had on their sale absent the inside information he held. The Commission prevailed in a motion for summary judgement against Mr. Brewer for trading on inside information. The case is still being litigated. See Lit. Rel. No. 26322 (June 10, 2025). </p>
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SEC Obtains Partial Summary Judgment Ruling On Insider Trading
<p>There seems to be little doubt that the current administration in Washington is impacting the SEC as well as many other government offices and agencies. While in theory the Commission is an independent regulatory agency, the recent testimony of its Chair seemed to leave little doubt that he was following a path created by the President. At the same time core matters like investigating and prosecuting insider trading should not be impacted by the political matters that swirl about the capitol as illustrated by its most recent insider trading case. See SEC v. Brewer, Civil Action No. 1:20 -cv-06175 (S.D.N.Y.).</p>
<p>Defendant Jack Brewer was the CEO and portfolio manager of registered investment adviser, Brewer Capital Management. He was also the CEO, president and president and owner of a related consulting firm, Brewer Group, Inc. </p>
<p>Defendant Brewer is alleged to have obtained inside information about the plans of COPsync Inc., a microcap company that operated a communication network for law enforcement officials. That firm planned to do a stock offering. Mr. Brewer participated in that offering, providing consulting services. The offering contained a clause that precluded Mr. Brewer from trading in the shares of that firm. The agreement also required him to maintain the confidentiality of the offering and not use information about the transaction for his benefit. </p>
<p>Nevertheless, Mr. Brewer sold over $100,000 of COPsync stock in advance of an announcement that caused its share price to fall. As a result, he had a profit of more than $35,000 than he would have otherwise had on their sale absent the inside information he held. The Commission prevailed in a motion for summary judgement against Mr. Brewer for trading on inside information. The case is still being litigated. See Lit. Rel. No. 26322 (June 10, 2025). </p>
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