The Securities and Exchange Commission has charged a former staffer with orchestrating a multiyear scheme to trade in options and other prohibited securities on his own behalf, his mother’s as well as a childhood friend’s while working at the commission.
The agency alleged on Tuesday that David R. Humphrey, who worked at the SEC from 1998 to 2014, concealed his personal trading from the SEC’s ethics office and later misrepresented his trading activities to the SEC’s Office of Inspector General when questioned during an investigation. He agreed to pay more than $108,000.
“As alleged in our complaint, Humphrey never sought preclearance for his prohibited options trades and he filed forms that falsely represented his securities holdings,” said Gerald Hodgkins, associate director in the SEC’s Division of Enforcement, in a statement.
In a parallel action Tuesday, the Department of Justice announced that Humphrey has pleaded guilty to criminal charges stemming from his false federal filings.
According to the SEC complaint, from 1998 to 2014, Humphrey “took affirmative steps to conceal his trading from the Ethics Office and others.”