SAN FRANCISCO (CN) - Chauncey Shey, a founder and director of UTStarcom, and his wife dumped their stock based on inside information, avoiding $420,000 in trading losses, the SEC claims in Federal Court.
Shey and his wife liquidated their UTStarcom holdings immediately after learning of disappointing quarterly financial results, the SEC says. The stock price sank by 25 percent the next week, after the public announcement. The SEC wants $420,226, penalties and an injunction. UTStarcom makes telecommunications equipment. See complaint.
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