The U.S. Securities and Exchange Commission has charged two individuals - accountant Gary Herwitz and former SIRIUS executive Tracey Stanyer - with insider trading ahead of news in 2004 that Howard Stern was moving to SIRIUS Satellite Radio.
The SEC stated in court that Herwitz allegedly bought SIRI stock on Sept 30th 2004, after learning in confidence from a colleague at Mahoney Cohen that Stern had received an offer from Sirius and that the parties were negotiating. The SEC also alleged that Tracey Stanyer bought SIRI stock on October 5th 2004, after learning in confidence from a senior Sirius executive that Sirius had signed an agreement with Stern.
Herwitz, a CPA and former president of the accounting firm Mahoney Cohen & Co., agreed to pay $52,000, while former SIRIUS Vice President, DaimlerChrysler Alliance Stanyer agreed to pay $35,000.
The judgment against Stanyer also bars him from acting as an officer or director of a public company.
[Reuters]
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