SEC prices former StoneX exec with insider buying and selling forward of GAIN Capital acquisition

The Securities and Alternate Fee (SEC) has introduced settled insider buying and selling prices towards Joseph Conlan for buying and selling within the securities of GAIN Capital Holdings, Inc. (GCAP) upfront of an announcement that Conlan’s former employer, StoneX Monetary (then often called INTL FCStone, Inc., had agreed to accumulate all excellent shares of GCAP inventory.

The SEC’s order finds that, on February 19, 2020, Conlan, who had labored at INTL as International Head of FX Gross sales till August 2018, realized from a detailed good friend and former colleague who nonetheless labored at INTL that INTL could be buying GCAP. In keeping with the order, Conlan misappropriated materials nonpublic details about the upcoming acquisition by buying GCAP inventory later that day.

The order finds that, when GCAP’s inventory worth rose by roughly 66% following the February 27, 2020 acquisition announcement, Conlan obtained ill-gotten beneficial properties of $73,627.47.

The SEC’s order finds that Conlan violated the antifraud provisions of Part 10(b) of the Securities Alternate Act of 1934 and Rule 10b-5 thereunder.

With out admitting or denying the SEC’s findings, Conlan agreed to settle the costs by consenting to a cease-and-desist order, a bar from serving as an officer or director of a public firm for a interval of 5 years, and an order to pay disgorgement of $73,627.47, prejudgment curiosity of $12,134.41, and a civil penalty of $73,627.47.

StoneX closed the acquisition of GAIN Capital, proprietor of retail FX manufacturers reminiscent of and Metropolis Index, in July 2020.