SEC Charges Chris Farrant Over Alleged Insider Trading Scheme

The US Securities and Exchange Commission added Chris Farrant as a defendant in a previously filed insider trading case, alleging that Farrant traded in the securities of two issuers based on material nonpublic information, the SEC said in a release.

According to the SEC's amended complaint, filed Sept. 29, Farrant received the information from a close friend, previously charged defendant Stephen Teixeira. The complaint alleges Teixeira had obtained the information from the laptop of a then-romantic partner, an executive assistant at an investment bank.

The SEC alleges that Farrant tipped the information, which Farrant knew to be misappropriated, to another close friend, previously charged defendant Jordan Meadow. The amended complaint further alleges that Meadow traded on the information and tipped a colleague and friend, Ronald Smith, who also traded on it, including for brokerage customers. The SEC previously filed charges against Smith in a separate action.

The amended complaint alleges that the scheme generated illicit profits of approximately $25,860 for Farrant, $28,600 for Teixeira, more than $730,000 for Meadow and more than $530,000 for Smith.

The amended complaint, filed in the US District Court for the Southern District of New York, charges Farrant with violating Section 10(b) of the Securities Exchange Act and Rule 10b-5. The SEC seeks injunctive relief, disgorgement with prejudgment interest and civil monetary penalties.