(HedgeCo.Net) The Securities and Exchange Commission has filed insider trading charges yesterday against Doron A. Tavlin, the former Vice President, Business Development of Mazor Robotics Ltd., and two friends who made more than $500,000 in profits from trading in advance of Mazor’s announcement that it would be acquired by Medtronic plc.
According to the SEC’s complaint, filed in federal court in Minnesota, Tavlin tipped his friend Afshin Farahan regarding Mazor’s impending acquisition by Medtronic. The complaint alleges that Farahan used the information to buy Mazor stock and also tipped his friend, David J. Gantman, who purchased Mazor stock and call options in advance of the September 20, 2018 acquisition announcement. The SEC alleges that Farahan made about $247,500 in illegal trading profits, and Gantman made approximately $255,600. According to the complaint, in October 2019, Tavlin asked Farahan for money in exchange for the Mazor information, and Farahan paid him a kickback of $25,000. The SEC’s Market Abuse Unit used data analysis tools to uncover the defendants’ timely and profitable trading.
The SEC’s complaint charges Tavlin, Farahan, and Gantman with violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC is seeking permanent injunctions, disgorgement plus prejudgment interest, and civil penalties against all three defendants, and is seeking an officer-and-director bar against Tavlin.
