The U.S. Securities & Exchange Commission charged Alfred V. Tobia, Jr., a former public company president and chief investment officer and a board member of another public company, and his sister-in-law, Elizabeth Lee, with insider trading that the SEC alleges generated more than USD 428,000 in illegal profits. Both defendants agreed to pay more than USD 1.36 million to settle the charges. According to the SEC’s complaint, Tobia allegedly tipped Lee in summer 2021 about his company’s planned offer to acquire all outstanding shares of Spok Holdings Inc., after which Lee bought Spok stock and sold within two days of the public announcement, when the share price rose about 26%, for alleged profits of more than USD 262,000. The SEC also alleges that Tobia tipped Lee about nonpublic information concerning PFSWeb, Inc.’s sale of its LiveArea business unit, leading Lee to buy 60,000 shares and later sell after the transaction was announced for alleged profits of more than USD 166,000. Without admitting or denying the allegations, Tobia and Lee agreed to permanent injunctive relief; Tobia also agreed to a five-year officer-and-director bar and a civil penalty of USD 785,020, while Lee agreed to a civil penalty of USD 576,955. The settlements are subject to court approval in the U.S. District Court for the Southern District of New York.
U.S. Securities & Exchange Commission 2025-01-13
U.S. Securities & Exchange Commission charges former public company officer and sister-in-law with insider trading and secures USD 1.36 million settlement
The U.S. Securities & Exchange Commission charged Alfred V. Tobia, Jr. and Elizabeth Lee with insider trading, allegedly generating over USD 428,000 in illegal profits. Tobia tipped Lee about nonpublic information on acquisitions involving Spok Holdings Inc. and PFSWeb, Inc., leading to significant profits. Both defendants agreed to pay over USD 1.36 million to settle the charges, with Tobia also accepting a five-year officer-and-director bar, subject to court approval.