HARTFORD, Conn. (AP) — Ted Kennedy Jr. says his former company is cooperating fully in an SEC investigation into allegations of insider trading.
The Marwood Group, a health care-focused consulting firm co-founded by Kennedy, received notice from the Securities and Exchange Commission this week that the agency's staff plans to recommend charging the company with civil insider trading, Fox Business Network reported Tuesday. The investigation has focused on alleged government information passed on to Marwood clients in 2010 about a new prostate-cancer treatment.
"I understand the SEC's concerns about the flow of government information, especially given the public's desire for more transparency," Kennedy said in a statement to The Associated Press. "While I have never been named or questioned by the SEC, I understand that my former company, the Marwood Group, has cooperated fully with the SEC's requests over the last three and a half years."
Marwood spokesman Michael McKeon denied any insider trading and said the company has been surprised by the allegations.
"We are very surprised because if you look at the facts there is no tipper, no materiality and clearly no financial benefit for anyone. In fact the whole premise is absurd," McKeon said.
Kennedy, the 53-year-old son of the late U.S. senator from Massachusetts, was elected in November to Connecticut's legislature. He served as president of Marwood for 12 years before leaving in January. He announced his candidacy for the state senate in April.
An SEC spokeswoman declined to comment on the investigation.