SEC Charges Father and Son With Insider Trading

September 21, 2011

The SEC charged Spencer D. Mindlin and his father, Alfred C. Mindlin, with insider trading. The SEC’s Division of Enforcement alleges that Spencer Mindlin conveyed material nonpublic information that he obtained in the course of his duties as an employee of Goldman, Sachs & Co. to his father, Alfred Mindlin. Spencer and Alfred Mindlin then traded based on this information in a brokerage account in the name of a family member and in Alfred Mindlin’s brokerage account.

Specifically, the SEC alleges that, while working on Goldman Sachs’s Exchange-Traded Funds Desk, Spencer Mindlin obtained material nonpublic information concerning Goldman Sachs’s plans to purchase and sell large amounts of securities underlying the SPDR S&P Retail ETF (XRT), an exchange-traded fund.  Spencer and Alfred Mindlin then traded in these securities ahead of Goldman Sachs. Prior to Goldman Sachs placing large buy orders in securities underlying the XRT (XRT underliers), Spencer and Alfred Mindlin took long positions in those same securities. When Goldman Sachs placed large sell orders in XRT underliers, Spencer and Alfred Mindlin took short positions in those same securities. On four occasions, in December 2007 and March 2008, Spencer and Alfred Mindlin traded XRT underliers with knowledge of Goldman’s trading intentions, reaping illicit profits in excess of $57,000.

Please click here to access the administrative order.


Categories

Enforcement Actions, Exchange-Traded Funds (ETFs), Investment Companies