SEC Charges Man Resident with Insider Trading in Art Technology, Inc.
The Securities and Exchange Commission has filed a complaint against Joseph McVicker with insider trading related to Oracle Corporation’s acquisition of Art Technology Group, Inc.
The complaint alleges that McVicker engaged in insider trading in shares of Cambridge-based Art Technology Group, Inc. in advance of an announcement on November 2, 2010, that Art Technology would be acquired by California-based Oracle Corporation. McVicker has agreed to settle these charges by, among other things, paying over $88,000 in disgorgement of trading profits and a civil penalty.
The SEC’s complaint alleges that on October 30, 2010, McVicker learned of the pending acquisition of Art Technology from a close friend at a social event.
The complaint further alleges that McVicker understood that the information was material, nonpublic information and that he should not use it to trade. According to the Commission’s complaint, however, on November 1, 2010, McVicker used the information to purchase 24,400 shares of Art Technology.
On November 2, 2010, before the market opened, Art Technology announced that Oracle had agreed to acquire Art Technology for $6 per share. Art Technology’s stock closed that day at $5.95 per share, a 45% increase from the previous trading day’s closing price, earning McVicker an ill-gotten gain of $44,268.
McVicker will pay disgorgement of $44,268, prejudgment interest of $365, and a civil penalty of $44,268.