This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.

Here is a sample of this item:

by Mike Caswell

David Schottenstein, the Florida man behind an insider trading scheme with Toronto's Aphria Inc., has agreed to pay $604,686 to settle charges he faces from the U.S. Securities and Exchange Commission. (All figures are in U.S. dollars.) The SEC said that Mr. Schottenstein learned of a takeover bid for Aphria before the deal became public. He received the information after soliciting tips from his cousin, who was an insider at Canadian Securities Exchange listing Green Growth Brands Ltd.

The $604,686 payment for Mr. Schottenstein is set out in a proposed judgment filed on Thursday, Jan. 4, in federal court in Boston. The amount includes disgorgement of $536,752 in profits, plus interest. On top of that, Mr. Schottenstein has agreed to terms barring any future violations. The sanctions are part of a negotiated settlement, and still require approval from the judge.

The deal with the SEC comes with Mr. Schottenstein having recently completed a jail term that he received as part of a parallel criminal case. A Boston judge sent Mr. Schottenstein to jail for one year after he pleaded guilty to a charge of conspiracy to commit securities fraud. He finished serving that sentence on Dec. 22, 2023.

The remainder is available to Stockwatch subscribers.
Sign-up for a FREE 30-day Stockwatch subscription and SEE NO ADS