Orange County Insider Trading Case Hastens SEC Retreat From Federal Court
In what has been described as the largest insider trading case ever filed in Orange County by the Securities and Exchange Commission (SEC), a jury earlier this year took only a few hours to return a verdict that found no wrongdoing by Manouch Moshayedi, the co-founder and former Chairman and CEO of sTec, Inc. The SEC had filed the case in the Santa Ana federal court, claiming that Mr. Moshayedi unjustly enriched himself by $267 million when he and family members sold nine million shares of the companyʼs stock while allegedly in possession of material, non-public information. The SEC also alleged that Mr. Moshayedi made material misrepresentations about sTecʼs business. On June 6, 2014, the jury rejected all of the SECʼs claims.