(HedgeCo.Net) The Securities and Exchange Commission has obtained a final judgment requiring a Michigan-based former accountant at Domino’s Pizza Inc. to pay a penalty of nearly $2 million for insider trading in the company’s stock.
The SEC’s complaint, filed April 13, 2022 in the U.S. District Court for the Eastern District of Michigan, alleged that Bernard L. Compton used confidential financial data he obtained through his role as an accountant at the corporate office of Domino’s to trade ahead of 12 of the company’s earnings announcements between 2015 and 2020. The SEC further alleged that Compton spread these trades across seven different brokerage accounts belonging to himself and various members of his family, which led to illicit profits of more than $960,000.
According to the SEC’s complaint, Compton violated the antifraud provisions of Section 10(b) of the Securities and Exchange Act of 1934 and Rule 10b-5 thereunder. Without admitting or denying the allegations, Compton consented to the court’s order that permanently enjoins him from violating these provisions and orders him to pay a civil penalty of $1,921,394. Compton further agreed to be suspended from appearing and practicing before the SEC as an accountant, which includes not participating in the financial reporting or audits of public companies.
