(HedgeCo.Net) The Federal district court in Connecticut has entered a final judgment against Katherine Hanratty, a resident of Watertown, Connecticut, to settle allegations that she was engaged in insider trading in the stock of a New Jersey-based payment processing company.

According to the SEC’s complaint, filed on July 10, 2018, Robert O. Carr, the former CEO of Heartland Payment Systems, Inc., provided his longtime girlfriend, Katherine M. Hanratty, with confidential information about a potential acquisition of his company by another payment processing company. In the weeks leading up to the merger announcement, Carr allegedly gave Hanratty $1 million to open a brokerage account and instructed her to use almost all of the funds to purchase Heartland stock. The SEC alleged that Hanratty followed Carr’s instructions, opening the account and purchasing more than 11,000 shares of Heartland stock. After the merger was announced, Heartland’s stock price rose substantially, and Hanratty allegedly sought Carr’s advice about when to sell the stock. Hanratty ultimately liquidated her entire position in a single day, earning substantial profits on the sale.

Without admitting or denying the allegations, Hanratty consented to the entry of a final judgment that permanently enjoins her from violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, orders her to pay $277,980 in disgorgement and prejudgment interest as well $250,628 as a penalty. The SEC’s case against Carr is ongoing.