By Nate Raymond
BOSTON (Reuters) - A Boston-area man has agreed to pay more than $590,000 to settle U.S. insider trading charges over a deal he learned about from his former romantic partner, a Wells Fargo & Co analyst he met while salsa dancing.
The U.S. Securities and Exchange Commission announced the settlement on Monday with Vlad Spivak, a resident of Medford, Massachusetts, whom the agency had accused of making more than $220,000 illegally through insider trading.
Spivak neither admitted nor denied the allegations in resolving the lawsuit, according to court papers. A lawyer for Spivak declined to comment.
In a lawsuit filed in November 2015, the SEC said Spivak had been unemployed and supported himself by day trading when he bought shares in American Dental Partners Inc from mid-October to Nov. 1 of 2011, ahead of its $398 million acquisition by private equity firm JLL Partners Inc.
The SEC said Spivak learned the company was going to be involved in a deal from Shirmila Doddi, who at the time was living in Boston and working at Wells Fargo, which had been advising American Dental Partners on potential transactions.
The SEC said Doddi, who later moved to San Diego and no longer works at Wells Fargo, had met Spivak at a salsa dancing club in early 2011 and developed a romantic relationship with him that lasted through at least the end of the year.
Under a settlement approved by U.S. District Judge Dennis Saylor in Boston on Monday, Spivak was required to forfeit his $222,357 in trading profits, plus pay $35,633 in interest and a civil penalty of $333,535.
Doddi previously settled with the SEC without admitting or denying wrongdoing.
The case is U.S. Securities and Exchange Commission v. Spivak, U.S. District Court, District of Massachusetts, No. 15-cv-13704.
(Reporting by Nate Raymond in Boston; Editing by Peter Cooney)