SEC Charges Ken Peterman, Former Comtech CEO, with Insider Trading in Advance of Negative Earnings Announcement

Core Summary - The SEC has charged Ken Peterman, former CEO of Comtech Telecommunications Corp, with insider trading related to the sale of Comtech shares based on material non-public information about the company's negative quarterly earnings results [2][3] - Peterman allegedly avoided losses of $12,445 by selling shares before the earnings announcement, and would have avoided an additional$110,000 in losses if not for a trading blackout [3] - The SEC is seeking permanent injunctive relief, disgorgement with prejudgment interest, civil penalties, and a bar preventing Peterman from serving as an officer or director of a public company [4] Legal Proceedings - The complaint was filed in the US District Court for the Eastern District of New York, charging Peterman with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 [4] - The US Attorney's Office for the Eastern District of New York has announced parallel criminal charges against Peterman [5] Investigation Details - The SEC's investigation was conducted by Mary Kay Dunning, Jordan Baker, and Liora Sukhatme, supervised by Tejal D Shah of the New York Regional Office [6] - The investigation received assistance from Leigh Barrett of the Office of Investigative and Market Analytics, and Heidi Verheggen and Kathryn Paige of the Division of Risk and Economic Analysis [6] - The litigation will be managed by Travis Hill and Mary Kay Dunning, supervised by Preethi Krishnamurthy of the New York Regional Office [6]