Former SeaWorld Associate General Counsel Charged With Insider Trading
After a period of financial decline, SeaWorld was set to beat analysts' financial expectations. The SEC alleged former associate general counsel Paul Powers used that confidential information to turn a profit.
April 09, 2019 at 06:02 PM
3 minute read
The U.S. Securities and Exchange Commission has charged a former SeaWorld lawyer with fraud for alleged insider trading.
In a complaint filed in Orlando, Florida, on Tuesday, the agency alleged that former SeaWorld Parks & Entertainment Inc. associate general counsel Paul Powers used confidential information that the company was set to exceed analysts' financial performance expectations for its second quarter in 2018 to make approximately $65,000 in alleged “illicit profits.” The U.S. Department of Justice announced parallel criminal charges against Powers on Tuesday.
According to the SEC, Powers received a draft of SeaWorld's earnings release Aug. 1, 2018. The following day, he allegedly purchased 18,000 shares of company stock. When SeaWorld publicly released its earnings in an 8-K filing Aug. 6, the company's stock rose 17 percent—and Powers sold all his shares.
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