Former Long Island CEO Charged with Insider Trading and Wire Fraud
A former Long Island CEO is facing insider trading and wire fraud charges, officials reported. Ken Peterman, the former CEO and chairman of the Board of Directors for a Melville public company, now residing in Encinitas, California, is scheduled to appear in federal court in the Southern District of California before being arraigned in the Eastern District of New York at a later date.
Allegedly, Peterman sold his company shares after learning of negative earnings and his impending termination. U.S. Attorney Breon Peace stated that Peterman exploited confidential information meant for corporate purposes for his personal gain. Peace expressed his commitment to prosecuting individuals like Peterman who would seek to benefit themselves at the expense of ordinary investors and the securities markets.
According to officials, Peterman obtained non-public information about the company’s financial performance and internal decisions, including news of impending negative earnings and his termination due to an alleged improper relationship with a subordinate. Subsequently, Peterman hastily sold or attempted to sell tens of thousands of Comtech’s shares, with potential penalties of up to 25 years in prison for securities fraud and up to 20 years for wire fraud if convicted.
Unfortunately, details about Peterman’s legal representation were not immediately available. Charges like these emphasize the importance of ethical conduct in securities trading to protect shareholders and maintain market integrity.
