Exec pays $1.4M to settle insider trading charges

Published on NewsOK Modified: November 30, 2012 at 11:28 am •  Published: November 30, 2012
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HARTFORD, Conn. (AP) — Federal securities regulators say an investment industry executive has paid $1.4 million to settle insider trading charges.

I. Joseph Massoud founded the investment advisory firm Compass Group Management.

The Securities and Exchange Commission said Friday that Massoud learned nonpublic information from an Internet site where interested bidders could learn more about the financial condition of Patriot Capital Funding Group before its sale.

The SEC says the Westport, Conn., man purchased shares soon after Compass Group gained access to the confidential information. Regulators say Patriot Capital's share price more than doubled after a merger was publicly announced, and Massoud realized more than $676,000 in illegal profit.

Massoud's lawyer says his client is pleased to resolve what he called a personal trading matter.

A judge must approve the agreement.