(HedgeCo.Net) The Securities and Exchange Commission has announced insider trading charges against Bradley C. Davis, a former Vice President of Nordson Corporation, an Ohio-based manufacturing company.

The SEC’s complaint alleges that in 2016, Davis regularly received confidential reports showing the strong financial performance of Nordson’s core adhesives division, the largest division at the company. Based on these reports, Davis allegedly purchased Nordson stock and options contracts prior to the company announcing favorable quarterly earnings that exceeded market expectations. According to the complaint, Davis sold his securities shortly after each of these earnings announcements, realizing over $850,000 in illicit profits from the rise in the Nordson’s stock price.

The SEC’s complaint, filed in federal court in the Southern District of New York, charges Davis with violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The complaint seeks a permanent injunction, disgorgement of ill-gotten gains with prejudgment interest, and a civil penalty.