Securities and Exchange Commission (SEC), 10b5-1 Plans, Criminal Prosecution

(Insider) Trading under a Rule 10b5-1 Plan

Bass, Berry & Sims PLC on 7/31/2025

In June 2025, Terren Scott Peizer, the former chief executive officer, executive chairman and chairman of the board of directors of Ontrak, Inc. (Ontrak), was sentenced to 42 months imprisonment, ordered to pay a $5.25...more

DOJ’s Novel Application of Insider Trading to 10b5-1 Plans Leads to Conviction

White & Case LLP on 7/3/2024

In April, we issued an alert discussing the U.S. Securities and Exchange Commission ("SEC") and Department of Justice’s ("DOJ") expansion of insider trading to 10b5-1 plans. On June 21, 2024, a federal jury in California...more

Conviction of Insider in Connection with 10B5-1 Trading Plan

BCLP on 7/1/2024

As discussed in our March 3, 2023 post, the DOJ and SEC brought an insider trading case against the founder and former CEO and Executive Chairman of Ontrak, Inc. based upon the former executive failing the “clean hands”...more

Latest SEC Guidance on Rule 10b5-1 Amendments

BCLP on 8/31/2023

As discussed in our December 15, 2022 post, significant amendments to Rule 10b5-1 plan requirements took effect earlier this year. With the Justice Department announcing its first criminal prosecution challenging a Rule...more

DOJ Brings First Criminal Charges Stemming From Use of Rule 10b5-1 Trading Plan

Perkins Coie on 3/10/2023

On March 1, 2023, the U.S. Department of Justice (DOJ) unsealed an indictment against the CEO of a publicly traded healthcare company (the Executive) relating to charges of an insider trading scheme. The indictment represents...more

DOJ Brings First-Ever Indictment for Insider Trading Based on Use of a Rule 10b5-1 Plan

BakerHostetler on 3/8/2023

On Wednesday, March 1 the Department of Justice (DOJ) announced its first-ever prosecution of an individual for insider trading based on an executive’s use of 10b5-1 trading plans. Terren Peizer, the executive chairman of...more

The First Criminal Rule 10b-5-1 Case

Dorsey & Whitney LLP on 3/8/2023

The Commission created Rule 10b5-1 plans two decades ago. The rule essentially creates a safe haven for those who in good faith trade securities and are not in possession of inside information....more

Securities and Exchange Commission (SEC) › 10b5-1 Plans › Criminal Prosecution