Florida man to pay over $278K for insider trading connected to Apple's AuthenTec takeover

Posted:
in General Discussion edited July 2017
A former AuthenTec worker has reached a $278,773 settlement with the U.S. Securities and Exchange Commission, resolving insider trading charges following Apple's buyout of his employer.




John Stimpson, a senior network administrator, bought AuthenTec call options after learning private information about a merger in early July 2012, the SEC said according to Forbes. He allegedly heard about a special AuthenTec board meeting, as well as abnormal activity in the company's human resources department.

The options were sold less than three months after Apple acquired AuthenTec for $356 million, allowing Stimpson to take advantage of a spike in the latter company's stock price.

The settlement includes $135,570 in surrendered trading profit, $7,633 in interest, and a $135,570 civil fine. Stimpson will not, however, have to admit any wrongdoing.

Apple used AuthenTec's technology as the basis for Touch ID, the fingerprint recognition system found on some MacBook Pros, every iPhone since the 5s, and every iPad since the Air 2. The technology lets users quickly unlock a device, authenticate with apps, and make Apple Pay transactions.

It's uncertain though if this year's "iPhone 8" will include Touch ID. While it could be embedded in the phone's OLED screen, some reports have differed on its location, and it's even possible that Apple will replace Touch ID with the phone's 3D facial recognition.

Comments

  • Reply 1 of 7
    SpamSandwichSpamSandwich Posts: 29,068member
    It's always those shifty admins.  ;)
  • Reply 2 of 7
    SoliSoli Posts: 7,035member
    If he invested his profits after that he could’ve made a nice profit after his fines in 5 years.
    radarthekat
  • Reply 3 of 7
    Soli said:
    If he invested his profits after that he could’ve made a nice profit after his fines in 5 years.
    You're suggesting that the $7,633 in interest charges were too low?

    Personally, I liked this bit: "The settlement includes $135,570 in surrendered trading profit, $7,633 in interest, and a $135,570 civil fine. Stimpson will not, however, have to admit any wrongdoing."  I'm sure he feels really good about not having to admit wrongdoing.  I expect that that $140K in fines and interest hurt though.
  • Reply 4 of 7
    SoliSoli Posts: 7,035member
    Soli said:
    If he invested his profits after that he could’ve made a nice profit after his fines in 5 years.
    You're suggesting that the $7,633 in interest charges were too low?

    Personally, I liked this bit: "The settlement includes $135,570 in surrendered trading profit, $7,633 in interest, and a $135,570 civil fine. Stimpson will not, however, have to admit any wrongdoing."  I'm sure he feels really good about not having to admit wrongdoing.  I expect that that $140K in fines and interest hurt though.
    His fines are all of it, not just the interest. I’m saying that he could still walk away with a hefty profit after being able to invest nearly $140k for 6 years.
  • Reply 5 of 7
    welshdogwelshdog Posts: 1,558member
  • Reply 6 of 7
    asdasdasdasd Posts: 4,996member
    Soli said:
    Soli said:
    If he invested his profits after that he could’ve made a nice profit after his fines in 5 years.
    You're suggesting that the $7,633 in interest charges were too low?

    Personally, I liked this bit: "The settlement includes $135,570 in surrendered trading profit, $7,633 in interest, and a $135,570 civil fine. Stimpson will not, however, have to admit any wrongdoing."  I'm sure he feels really good about not having to admit wrongdoing.  I expect that that $140K in fines and interest hurt though.
    His fines are all of it, not just the interest. I’m saying that he could still walk away with a hefty profit after being able to invest nearly $140k for 6 years.
    he would have to double in 6 years because of the fines. Unlikely 
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