The Securities and Exchange Commission has charged an accounting firm partner in Atlanta with insider trading in the stock of a client’s restaurant company while tipping off other clients, and he agreed to pay over $124,000 to settle the charges.
The SEC alleged that Donald S. Toth, a 59-year-old CPA, disregarded his fiduciary duty to a client when he illicitly purchased stock in O’Charley’s Inc.—which operates restaurant franchises under the brand names O’Charley’s, Ninety Nine Restaurant, and Stoney River Legendary Steaks—after the client on the board of directors revealed to him in a tax-planning meeting that Fidelity National Financial was planning to purchase the company. The client came to Toth for tax advice in advance of the tender offer announcement, according to the SEC.
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