by: Jason Stoogenke Updated:
CHARLOTTE, N.C. - The Securities and Exchange Commission charged 10 people and two companies with insider trading.
According to the SEC, John Femenia was the ringleader. He worked for Wells Fargo Securities in Charlotte. The SEC says he used confidential information about four mergers and traded illegally, making him and his ring more than $11 million in the process.
The SEC says Femenia would tip off Shawn Hegedus, who then spread the word to certain people across five states. The SEC charged 10 suspects and two businesses, Coram Real Estate Holdings and Goldstar P.S.
The SEC issued a statement about Femenia, saying, "[He] basically started a phone tree of nonpublic information to enrich friends and others." The SEC believes at least one trader gave Femenia part of the profits.
Wells Fargo emailed WSOC, stating "[We] have a zero-tolerance policy for the misuse of such information."
A federal judge froze the defendants’ assets. The SEC thinks two other people have some of the money, so the federal government named them as relief defendants in the criminal complaint.
Former Charlotte investment banker charged by SEC in insider trading ring
Couple sought after wedding photos found on flash drive at thrift store
Deputies: Man exposes himself to teen girl at Harrisburg shopping center
Police investigate video showing man kicking cat off steep hill
Report: Russian warships fire missiles at ISIS targets in Syria