Ex-SEC accountant faces charges over illegal options trades: sources

Reuters News
Posted: May 03, 2017 12:57 PM

By Sarah N. Lynch

WASHINGTON (Reuters) - A former accountant at the U.S. Securities and Exchange Commission (SEC) is expected to settle parallel criminal and civil charges, after he was caught illegally trading options while working at the agency, according to multiple sources familiar with the matter.

The charges against David R. Humphrey, a 16-year SEC veteran, represent a rare instance of the SEC taking enforcement action against one of its own employees, and constitute an unusual violation of the SEC's ethics rules.

Humphrey is charged with one criminal count of making a false written statement, after repeatedly filing false government ethics forms that failed to disclose certain investments, according to a federal court filing.

Sources familiar with the case say he is expected to plead guilty to the criminal charge, and settle related civil SEC charges, after he was caught trading options -including many on his SEC work computer - over the course of more than a decade for himself, as well as for his mother and a friend.

(Reporting by Sarah N. Lynch)