The SEC charged Whittier Trust Company, a California-based wealth management company, and its former fund manager, Victor Dosti, with insider trading on non-public information about technology companies. The SEC alleges that Dosti generated profits and avoided losses for the funds he managed at the Trust by trading on confidential information he obtained from Danny Kuo, a fund manager he supervised. The scheme involved the securities of Dell, Nvidia Corporation, and Wind River Systems. Kuo was charged by the SEC in 2012 and is cooperating with the investigation. The SEC’s complaint charges Whittier Trust and Dosti with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, and Section 17(a) of the Securities Act of 1933. The Trust and Dosti agreed to pay nearly $1.7 million to settle the charges.
The SEC has charged more than 3 dozen firms and individuals in enforcement actions arising out of its expert networks investigation, which has exposed insider trading at several hedge funds and other investment advisory firms.
Click here to access a press release and the Complaint.