The Securities and Exchange Commission and the Justice Department have brought civil and criminal charges against a Chicago accountant who used his wife’s trading account to short-sell shares in the health care information company where he was director of internal audit ahead of the public release of the company’s financial results, earning more than a quarter-million dollars in profits.
The SEC alleges that Steven M. Dombrowski, a 49-year-old CPA, confidentially learned through his job at Allscripts Healthcare Solutions that the company’s first-quarter 2012 financial results were much worse than anticipated and the company would miss its earnings target. Despite a company-imposed blackout period on trading its securities, Dombrowski secretly used his wife’s account at Charles Schwab to trade Allscripts securities ahead of the bad news and profit on the nonpublic information.
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