The market watchdog claims that Dosti carried out trading on secret tip-off from Danny Kuo, a Whittier Trust fund manager and generated profits and avoided losses for funds he managed at the trust.
As per the SEC’s complaint filed in US District Court for the Southern District of New York, Dosti used non-public information obtained from employees at Dell and Nvidia to trade in advance of five quarterly earnings announcements in 2008, 2009 and 2010.
Besides thwarting a loss of over $475,000 for Whittier Trust funds, he earned $247,000 in illegal profits for the trust funds by trading Wind River stock based upon detailed information that Kuo obtained.
SEC New York regional office senior associate director Sanjay Wadhwa said that Dosti received the confidential information and traded on it to generate illicit gains for the funds he managed.
"Now, he and Whittier Trust join a long list of insider trading perpetrators who have been held accountable by the SEC for their transgressions," Wadhwa added.
Whittier Trust agreed to pay disgorgement of $724,051.62 as well as prejudgment interest of $75,296 and a penalty of $724,051.62, while Dosti will reimburse disgorgement of $77,900 plus prejudgment interest of $2,951.43, and a penalty of $77,900.
