A judge at the U.S. Securities and Exchange Commission (SEC), today, dismissed an insider trading case against a former Well Fargo Securities, LLC trader on the grounds the regulators enforcement staff failed to meet its burden of proof. Well Fargo Securities is a Financial Industry Regulatory Authority (FINRA) registered broker dealer.
In a written decision, Administrative Law Judge Jason Patil dismissed the claims against a former Wells Fargo Securities LLC trader who was accused by the SEC of trading on information received from a analyst at the bank.
The judge found that although the SEC showed Joseph Ruggieri traded on the analyst tips on several occasions, it did not meet it burden of showing the alleged tipper gave him information in exchange for a personal benefit under the meaning established by both the Second Circuit's Newman decision and the Supreme Court’s 1983 opinion known as Dirks.
The SEC's enforcement division can still appeal Judge Patil's ruling.
The experienced securities litigation attorneys at Colling Gilbert Wright & Carter have litigated and resolved hundreds of FINRA arbitration claims. If you believe you lost money due to negligence or fraud on the part of your FINRA registered broker dealer, please contact us for a free case evaluation.