MANHATTAN (CN) - A former executive at J.Crew Group made more than $60,000 trading on inside information about the company's sales and expenses, the Securities and Exchange Commission claims in Federal Court.
While director of store operations, Frank LoBue traded on nonpublic reports about how the clothing retailer's stores were doing, the SEC claims.
"He regularly received and used nonpublic reports about the company's sales and expense performance and how that performance compared to J.Crew's internal projections and comparable sales in prior periods," the agency claims.
LoBue, 43, allegedly used that information to buy 2,300 shares of J.Crew stock before the company's May 28, 2009 earnings release, which announced better-than-expected results.
He did it again three months later, buying 11,680 shares of J.Crew stock ahead of the company's favorable Aug. 27 earnings release, the SEC claims.
The agency says LoBue made at least $60,735 from the trades when markets reacted positively to the numbers.
LoBue is accused of inside trading in violation of the Securities and Exchange Act.
Read the Top 8
Sign up for the Top 8, a roundup of the day's top stories delivered directly to your inbox Monday through Friday.