SEC v. Barry Siegel, No. LR-26123, Southern District of New York (Sept. 24, 2024) — Press Release
raw: Barry Siegel
Barry Siegel, No. 1:24-CV-7210 (S.D.N.Y. Sept. 24, 2024)
summary
Former Foot Locker Senior Director Barry Siegel was charged by the SEC for insider trading using nonpublic sales data, resulting in a settlement involving over $235,000 in penalties and a director bar.
paragraph
Barry Siegel was charged with violating the Securities Act of 1933 and the Securities Exchange Act of 1934 for short-selling Foot Locker stock ahead of two 2023 earnings announcements. He allegedly leveraged material nonpublic sales and inventory data to realize total profits of $112,868.95. To settle the charges, Siegel consented to a judgment including $112,868.95 in disgorgement, $9,975.97 in interest, and a $112,868.95 civil penalty.
narrative
The SEC charged former Foot Locker Senior Director Barry Siegel with insider trading for using material nonpublic sales and inventory data to short the company's stock. Siegel executed two major short trades ahead of 2023 earnings announcements, realizing profits of $82,736.06 and $30,132.89 as stock prices plummeted. These trades occurred despite Siegel being subject to Foot Locker’s internal insider trading policies. To resolve the charges of violating Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act, Siegel consented to a judgment. His settlement includes $112,868.95 in disgorgement, $9,975.97 in prejudgment interest, and a $112,868.95 civil monetary penalty. Additionally, Siegel is barred from serving as an officer or director of a public company and is subject to a permanent injunction against future violations.
Classified insider-trading(confidence 99%). EDGAR detection: forms 4/3/5/144· recall 81% / precision 19%. detection rule →
Parties
Securities and Exchange CommissionBarry Siegel
Keywords
foot lockersiegelfootlockersecbarry siegelsecurities exchangeexchange commissioninsider tradinglocker stockfurther allegessecuritiesbarryexchangealleges
Exhibits & Attached Documents (1)
Extracted insights
Dollar amounts 4
- $113K $112,868 $100K–$1M
- $83K $82,736 $10K–$100K
- $30K $30,132 $10K–$100K
- $10K $9,975 <$10K
Entities 12
- company acting or serving as an officer or director of a public company
- person barry siegel
- person celeste chase
- court complaint in united states district court for the southern district of new york
- person foot locker stock
- person jeremy brandt
- person lauren sheridan
- person matthew lambert
- agency sec investigation
- agency Securities and Exchange Commission
- person sheldon pollock
- person wes wintermyer
Triples 26
- Securities And Exchange Commission charged Barry Siegel
- Barry Siegel had access to material nonpublic sales and inventory data
- Barry Siegel served as Senior Director Of Order Planning Management, North America At Foot Locker
- Barry Siegel shorted Foot Locker stock in advance of first quarter 2023 earnings announcement
- Foot Locker stock fell by 27.24% after the announcement
- Barry Siegel covered his short position for a $82,736.06 profit
- Barry Siegel was laid off his job at Foot Locker in early August 2023
- Barry Siegel sold short Foot Locker stock in advance of second quarter 2023 earnings announcement
- Foot Locker stock fell by 28.28% after that announcement
- Barry Siegel covered his short position for a $30,132.89 profit
- Barry Siegel possessed material nonpublic information concerning Foot Locker’s operating results
- Barry Siegel traded based on that information despite being subject to Foot Locker’s Policy Prohibiting Insider Trading
- Securities And Exchange Commission filed complaint in United States District Court for the Southern District Of New York
- Complaint charged Barry Siegel with violating Section 17(a) Of The Securities Act Of 1933
- Complaint charged Barry Siegel with violating Section 10(b) Of The Securities Exchange Act Of 1934
- Complaint charged Barry Siegel with violating Rule 10b-5
- Barry Siegel consented to judgment permanently enjoining him from future violations of the charged provisions
- Barry Siegel ordered to pay disgorgement of $112,868.95 plus prejudgment interest of $9,975.97
- Barry Siegel ordered to pay civil monetary penalty of $112,868.95
- Barry Siegel barred from acting or serving as an officer or director of a public company
- SEC investigation conducted by Jeremy Brandt
- SEC investigation conducted by Wes Wintermyer
- SEC investigation conducted by Matthew Lambert
- SEC investigation conducted by Lauren Sheridan
- SEC investigation supervised by Celeste Chase
- SEC investigation supervised by Sheldon Pollock
PDF (from attached: complaint)
Text layers
Extracted body text (2,489c)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26123 / September 24, 2024 Securities and Exchange Commission v. Barry Siegel, No. 1:24-CV-7210 (S.D.N.Y. filed September 24, 2024) SEC Charges Former Foot Locker Employee with Insider Trading The Securities and Exchange Commission charged New York resident Barry Siegel with insider trading ahead of two earnings announcements by Foot Locker, Inc. According to the SEC’s complaint, Siegel had access to material nonpublic sales and inventory data in his role as Senior Director of Order Planning Management, North America at Foot Locker. The SEC alleges while in that role, Siegel shorted Foot Locker stock in advance of the company’s first quarter 2023 earnings announcement in May 2023. The SEC further alleges that, after the announcement, Foot Locker’s stock price fell by 27.24%, and Siegel covered his short position for a $82,736.06 profit. The complaint further alleges, in early August 2023, about a week after being laid off from his job at Foot Locker, Siegel sold short Foot Locker stock again, this time in advance of the company’s announcement of its second quarter 2023 earnings. According to the complaint, after that announcement, the stock price fell by 28.28% and Siegel covered his short position for a $30,132.89 profit. The SEC further alleges that before each of his trades, Siegel was in possession of material nonpublic information concerning Foot Locker’s operating results, including negative sales and inventory figures, and that he traded based on that information despite being subject to Foot Locker’s Policy Prohibiting Insider Trading. The SEC’s complaint, filed in U.S. District Court for the Southern District of New York, charges Siegel with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Without admitting or denying the allegations, Siegel consented to a judgment, subject to court approval, permanently enjoining him from future violations of the charged provisions; ordering him to pay disgorgement of $112,868.95 plus prejudgment interest of $9,975.97; imposing a civil monetary penalty of $112,868.95; and barring him from acting or serving as an officer or director of a public company. The SEC’s investigation was conducted by Jeremy Brandt, Wes Wintermyer, Matthew Lambert, and Lauren Sheridan of the SEC’s New York Regional Office, and was supervised by Celeste Chase and Sheldon Pollock.
OCR text (2,489c · html-text · 99% conf)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26123 / September 24, 2024 Securities and Exchange Commission v. Barry Siegel, No. 1:24-CV-7210 (S.D.N.Y. filed September 24, 2024) SEC Charges Former Foot Locker Employee with Insider Trading The Securities and Exchange Commission charged New York resident Barry Siegel with insider trading ahead of two earnings announcements by Foot Locker, Inc. According to the SEC’s complaint, Siegel had access to material nonpublic sales and inventory data in his role as Senior Director of Order Planning Management, North America at Foot Locker. The SEC alleges while in that role, Siegel shorted Foot Locker stock in advance of the company’s first quarter 2023 earnings announcement in May 2023. The SEC further alleges that, after the announcement, Foot Locker’s stock price fell by 27.24%, and Siegel covered his short position for a $82,736.06 profit. The complaint further alleges, in early August 2023, about a week after being laid off from his job at Foot Locker, Siegel sold short Foot Locker stock again, this time in advance of the company’s announcement of its second quarter 2023 earnings. According to the complaint, after that announcement, the stock price fell by 28.28% and Siegel covered his short position for a $30,132.89 profit. The SEC further alleges that before each of his trades, Siegel was in possession of material nonpublic information concerning Foot Locker’s operating results, including negative sales and inventory figures, and that he traded based on that information despite being subject to Foot Locker’s Policy Prohibiting Insider Trading. The SEC’s complaint, filed in U.S. District Court for the Southern District of New York, charges Siegel with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Without admitting or denying the allegations, Siegel consented to a judgment, subject to court approval, permanently enjoining him from future violations of the charged provisions; ordering him to pay disgorgement of $112,868.95 plus prejudgment interest of $9,975.97; imposing a civil monetary penalty of $112,868.95; and barring him from acting or serving as an officer or director of a public company. The SEC’s investigation was conducted by Jeremy Brandt, Wes Wintermyer, Matthew Lambert, and Lauren Sheridan of the SEC’s New York Regional Office, and was supervised by Celeste Chase and Sheldon Pollock.