SEC Charges Four Individuals for Long-Running Scheme to Unlawfully Trade in Advance of Numerous Follow-On Offerings

The Securities and Exchange Commission today filed fraud charges against John Lowe, Randy Grewal, Richard Ringel, and David Cooper arising from their longstanding fraudulent scheme to trade in advance of the public announcement of the timing or price, or both, of numerous follow-on offerings of NASDAQ-listed issuers. According to the SEC’s complaint, the defendants engaged in the following arrangement: Cooper, a registered representative at a broker-dealer with frequent access to material, nonpublic information about the timing or price, or both, of follow-on offerings, provided this information to Ringel, while Cooper’s colleague shared similar information with Lowe. As alleged, Lowe then provided this information to Grewal.