The Securities and Exchange Commission on Friday charged a group of seven men, most of them “golfing buddies,” for participating in an insider trading scheme that resulted in $554,000 in illegal profits, the SEC said in a statement.
The SEC claimed that one of the golfers, Eric McPhail, shared non-public information about Massachusetts-based American Superconductor Corporation. McPhail allegedly received advanced information on the company’s earnings, contracts, and other corporate developments from a company executive, a friend of his who happened to belong to the same country club, the SEC said. The executive fed McPhail information from July 2009 through April 2011, trusting that he would keep the information confidential. But instead, McPhail allegedly emailed his six friends to share what he was told. Each of these men then traded illegally on the information they received from McPhail, according to the SEC.
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