This running SEC Trial Scorecard tracks the SEC's trials and outcomes for FY 2015. To date in FY 2015 -- which began on October 1, 2014, and which ends on September 30, 2015 -- the SEC has now had six trials in federal court reach a verdict (see the full list below). The most recent verdict was reached on September 24 in the case of SEC v. Morando Berrettini and Ralph Pirtle. In that case, a federal jury in the U.S. District Court for the Northern District of Illinois found that Berrettini and Pirtle were liable for insider trading in the securities of Lifeline Systems, Inc., Invacare, Inc., and Intermagnetics Corporation that occurred between December 2005 and June 2006.
According to the SEC, Pirtle, the former Director of Real Estate for Philips Electronics North America, Inc., a wholly-owned subsidiary of Royal Philips, N.V. (“Philips”), learned inside information about Philips’ acquisition plans and tipped Berrettini. The SEC alleged that Berrettini had ill-gotten gains of over $240,000 on his insider trading, and that Berrettini subsequently "purchased goods and services for Pirtle through cashier’s checks totaling approximately $226,000."
In yesterday's verdict, the jury found both defendants liable for Counts I-III, which alleged insider trading in violation of Section 10(b) of the Exchange Act. Accordingly, U.S. Judge Judge Robert M Dow, Jr. instructed the jury not to consider Counts IV-VI against Berrettini, which were pled in the alternative.
With just five days remaining in its FY 2015, the SEC's scorecard for the year now includes six trials. In four of those trials, the SEC won on all of its claims, and in two trials the verdict was mixed. Here is the list as it currently stands:
SEC v. iShopNoMarkup.com, Inc.: VERDICT—FOR SEC (Oct. 2014)
SEC v. Kokesh: VERDICT—FOR SEC (Nov. 2014)
SEC v. BankAtlantic Bancorp, Inc. and Alan B. Levan: VERDICT—MIXED (Dec. 2014)
SEC v. Heart Tronic: VERDICT—MIXED (March 2015)
SEC v. Levin: VERDICT—FOR SEC (April 2015)
SEC v. Morando Berrettini and Ralph Pirtle: VERDICT—FOR SEC (September 2015)