A CPA with radio personality Howard Stern's accounting firm has settled insider trading charges brought by the Securities and Exchange Commission.
The agency charged Gary Herwitz and former Sirius Satellite Radio Inc. v ice president Tracey Stanyer with insider trading, saying the two bought shares of the company after learning in September 2004 that Stern was seriously considering a move to the subscription-based service.
The SEC said that Stanyer learned from a senior Sirius executive that the company was negotiating with Stern and was cautioned that the negotiations were confidential. Herwitz, who bought 25,000 shares of Sirius, will pay a fine of $52,163, reflecting the profit and civil penalties. Stanyer will pay the SEC $35,000 to settle charges against him. The two men neither admitted nor denied the charges against them.
The controversial Stern left the broadcast airwaves Dec. 16 and is scheduled to join Sirius in January.
