SEC Sues STEC Head For Insider Trading In Stock Offering

Law360, New York (July 19, 2012, 7:27 PM EDT) -- The U.S. Securities and Exchange Commission on Thursday filed a lawsuit accusing the chairman and CEO of computer storage device maker STEC Inc. of insider trading in a secondary offering of stock that grossed him and his brother $134 million each.

The SEC alleged that Manouchehr Moshayedi exploited his knowledge that a major customer wanted far fewer of the company's most profitable products — information that wasn't known to the public — when he sold a significant portion of his stock holdings as well as shares...
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