Securities and Exchange Commission v. Braverman

On September 16, 2014, the Securities and Exchange Commission (“SEC”) charged Dmitry Braverman, an employee in an IT department of an international law firm, with insider trading. The SEC alleged that Braverman violated Section 10(b) of the Securities Exchange Act of 1934, Rule 10b-5, Section 14(e) of the Exchange Act, and Rule 14e-3 by using nonpublic information to obtain more than $300,000 in unlawful profits.

Braverman’s insider trading allegedly began in 2010 when he used nonpublic information to purchase stock in accounts in his own name. After charges were filed against a lawyer at his same firm for insider trading, Braverman allegedly liquidated the stock purchased on the basis of the inside information. After waiting 18 months, he was alleged to have resumed trading through an account in the name of a Russian relative. The account originally used an email address employed by Braverman on earlier accounts. Braverman, however, changed the address to one that contained the first name of the Russian relative. The relative is named as a relief defendant for purposes of seizing the illegally obtained profits held in the account under his name.

The U.S. Attorney’s Office for the Southern District of New York also brought criminal charges against Braverman related to the matter.  

The primary materials for this case, including the complaint filed by the SEC, may be found on the DU Corporate Governance website.

Patrick Rohl