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Settlement with Mutual Fund Manager for Insider Trading That Allowed the Mutual Fund He Managed to Avoid Close to a Million Dollars in Losses
SEC v. Joseph A. Frohna
- 2007
- $2.2 Million
Defendant allegedly learned from his brother, the leader of a bio-equivalence study for a drug being co-developed by XOMA, Ltd., that the study was unsuccessful and the drug would not be approved. And thereafter caused the fund he managed, First American Investment Fund, Inc.’s Micro Cap Fund, to aggressively sell all of its 332,000 XOMA shares. In addition to being enjoined and sanctioned, defendant also was suspended from association with any investment adviser for a year.
