Brian Rubin, a 51-year-old man from Deerfield, Illinois, was charged for insider trading by the U.S. Attorney's Office in the Northern District of Illinois. He purportedly exploited confidential information received from his spouse.
According to charges filed in the Chicago federal court, Rubin illegally profited $90,450 from stock options transactions in a Colorado biotech company where his spouse was employed. Rubin allegedly used confidential details about a successful product development and an upcoming acquisition by a New York pharma entity. This information was gained from his wife before the public announcement in June 2019.
The stock price of the biotech company increased after the public announcement had been. Rubin executed the stock options to gain profit. His spouse got the details due to her role as an account director for the Midwest operations of the biotech company.
Cases such as Rubin's fuel concerns about unauthorized access and misuse of confidential information that can impact the stock market. There are many incidents of insider trading across the country.
Securities fraud, Rubin's charge, carries up a possible imprisonment of 20 years federally. It's important to mention that Rubin has right for a fair trial where the burden of proof lies with the government.
The U.S. Securities and Exchange Commission has enforced regulations in response to these activities, as evidenced by a civil enforcement action against Rubin.
