A longtime enterprise tech executive was charged with insider trading on Thursday by the Securities and Exchange Commission which alleged that he tipped off his two of his brothers and helped them dump shares in his company ahead of an ugly quarterly earnings report.
Amer Deeba, the defendant, worked at Qualys for 17 years, most recently as chief commercial officer of the cloud security and services company. He had special access to Qualys CEO Philippe Courtot, according to the complaint, and was the only senior executive to sit near Courtot in the office.
The SEC alleges that Deeba was privy to a significant miss on revenue in the company’s Q1 2015 quarter, and encouraged his brothers to sell of their shares on that information before the company announced its results.
Deeba, who has settled the case without admitting or denying the allegations, will be barred for two years from serving as an executive or director at any SEC-reporting company and will pay a penalty of $581,170 — the amount of losses his tip allegedly saved his brothers.
Source: Business Insider