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by Mike Caswell

The U.S. Securities and Exchange Commission has filed insider trading charges against a New York broker and an associate for an insider trading scheme that generated millions of dollars in illegal gains through an insecure laptop computer. The SEC claims that the men traded ahead of the $2-billion takeover of Toronto Stock Exchange listing Score Media and Gaming Inc. in 2021. (All figures are in U.S. dollars.) They learned about the takeover and other deals through unauthorized access to a girlfriend's work laptop, the SEC says.

The allegations are contained in a civil complaint that the SEC filed on Thursday, June 29, in federal court in New York. The defendants are Jordan Meadow, 34, of New Jersey, and Steven Teixeira, 32, of New York. The men also face parallel criminal charges in New York, with Mr. Meadow being arrested Thursday morning and Mr. Teixeira having previously agreed to plead guilty.

The charges arise from inside information that Mr. Teixeira obtained through his girlfriend, who worked at an investment bank as an executive assistant. The SEC says that she shared an apartment with Mr. Teixeira and often worked from home. Starting in late 2020, Mr. Teixeira began accessing her laptop while she was away, the SEC claims. He looked through her e-mail application to find attachments that contained the names of investment bank clients and had the terms of potential deals that the bank was working on for those clients, the complaint states.

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