STAMFORD, Conn. – A vice president at Stamford-based Harman International Industries is accused of running an insider trading scheme that netted him nearly $132,000, according to U.S. Attorney for Connecticut Deirdre Daly.
Dennis W. Hamilton, 45, of Norwalk, was arrested Friday, Feb. 5, and charged with insider trading, Daly said.
Hamilton was told in 2009 that he was legally allowed to purchase stock in the company during certain periods of time, according to Daly.
In August 2013, he was told that a window to purchase stock had opened. It would later close on Sept. 27, 2013, according to Daly.
In October 2013, after the window has closed, Hamilton received non-public information, including financial filings and a company earnings press release. He also participated in an earnings call in which Harman’s leadership discussed awarding a quarterly cash dividend to its common stockholders.
On Oct. 30, 2013, Hamilton purchased 17,000 shares of Harman through a Charles Schwab account in the name of his wife, according to Daly.
On Oct. 31, 2013, after the company announced positive quarterly earnings, the stock price jumped by nearly $10 per share. Over the next several days, Hamilton sold many of his shares, netting about $131,958, according to Daly.
If convicted, Hamilton could be sentenced to 20 years in prison. The investigation is ongoing, according to Daly.
In a parallel action, the Securities and Exchange Commission announced related civil charges against Hamilton.
This ongoing investigation is being conducted by the FBI with assistance from Harman International Industries.
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