SEC v. Kevin Crotty, No. LR-25985, Northern District of Illinois (Apr. 26, 2024) — Press Release
raw: Kevin Crotty
Kevin Crotty, No. 1:24-cv-3387 (Apr. 26, 2024)
summary
Former BP senior manager Kevin Crotty settled SEC insider trading charges for misappropriating information regarding BP's acquisition of TravelCenters of America.
paragraph
Kevin Crotty was charged with violating antifraud provisions of the Securities Exchange Act after purchasing 848,824 shares of TravelCenters stock ahead of a major acquisition announcement. The trade resulted in an unrealized gain of $30,667 following a 70.8% surge in share price. To settle the matter, Crotty agreed to pay $30,667 in disgorgement, $1,274.50 in interest, and a $30,667 civil penalty.
narrative
The SEC charged former BP senior manager Kevin Crotty with insider trading for misappropriating material, nonpublic information regarding BP’s acquisition of TravelCenters of America Inc. On February 15, 2023, Crotty purchased 848,824 shares of TravelCenters stock, just one day before the acquisition announcement triggered a 70.8% price increase. This trade generated an unrealized gain of $30,667. To resolve the SEC charges, Crotty agreed to a settlement including an officer and director bar and the payment of $30,667 in disgorgement, $1,274.50 in prejudgment interest, and a $30,667 civil penalty. This civil enforcement action runs parallel to criminal charges filed by the U.S. Attorney's Office for the Northern District of Illinois. The settlement remains subject to court approval.
Classified insider-trading(confidence 100%). EDGAR detection: forms 4/3/5/144· recall 81% / precision 19%. detection rule →
Parties
Securities and Exchange CommissionKevin Crotty
Keywords
crottyseckevin crottysecurities exchangeexchangeexchange commissioninsider tradingnorthern illinoistravelcenterskevinsecuritiestradingtrading aheadexchange thereundercrotty agreed
Exhibits & Attached Documents (1)
Extracted insights
Dollar amounts 2
- $31K $30,667 $10K–$100K
- $1K $1,274 <$10K
Entities 8
- organization BP p.l.c.
- company BP P.L.C.
- person kevin crotty
- person material nonpublic information
- agency Securities and Exchange Commission
- organization Securities and Exchange Commission
- organization TravelCenters of America Inc.
- company TravelCenters Of America Inc.
Triples 10
- Securities And Exchange Commission Charges Kevin Crotty
- Kevin Crotty Purchased 848.824 Shares Of Travelcenters Stock
- Kevin Crotty Misappropriated Material Nonpublic Information
- BP P.L.C. Agreed To Acquire Travelcenters Of America Inc.
- Securities And Exchange Commission Filed Complaint Against Kevin Crotty
- Kevin Crotty Agreed To Pay $30,667 Disgorgement
- Kevin Crotty Agreed To Pay $1,274.50 Prejudgment Interest
- Kevin Crotty Agreed To Pay $30,667 Civil Penalty
- U.S. Attorney'S Office Filed Criminal Charges Against Kevin Crotty
- Securities And Exchange Commission Investigating Kevin Crotty
PDF (from attached: complaint)
Text layers
Extracted body text (2,363c)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25985 / April 26, 2024 Securities and Exchange Commission v. Kevin Crotty, No. 1:24-cv-3387 (N.D. Ill. Filed April 26, 2024) SEC Charges Former BP Senior Manager with Insider Trading The Securities and Exchange Commission today charged Chicago-area resident Kevin Crotty with insider trading ahead of a February 16, 2023 announcement that BP p.l.c. agreed to acquire TravelCenters of America Inc. This is the second insider trading case the SEC has brought in connection with trading ahead of the announcement of BP’s acquisition of TravelCenters. According to the SEC’s complaint, Crotty misappropriated material, nonpublic information from a BP colleague who was working on the acquisition. The SEC alleges that after learning that it was highly likely that the deal would close, Crotty purchased 848.824 shares of TravelCenters stock on February 15, 2023. The following day, TravelCenters announced the acquisition, which triggered a 70.8% increase in TravelCenters share price and generated for Crotty an unrealized gain of $30,667. The SEC’s complaint, filed in U.S. District Court for the Northern District of Illinois, charges Crotty with violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 10b-5 thereunder. Crotty has agreed to settle the SEC’s charges, and the settlement is subject to the court’s approval. Without denying the allegations in the SEC’s complaint, Crotty has agreed to consent to the entry of a final judgment permanently enjoining him from future violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, imposing an officer and director bar, and ordering him to pay disgorgement of $30,667, prejudgment interest of $1,274.50, and a civil penalty of $30,667. In a parallel action, the U.S. Attorney's Office for the Northern District of Illinois filed criminal charges against Crotty. The SEC’s ongoing investigation is being conducted by Julia Huseman and Jamie Haussecker of the Fort Worth Regional Office, under the supervision of Jim Etri and B. David Fraser. The litigation will be led by Jason Rose and supervised by Keefe Bernstein. The SEC appreciates the assistance of the Financial Industry Regulatory Authority and the U.S. Attorney’s Office for the Northern District of Illinois.
OCR text (2,363c · html-text · 99% conf)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25985 / April 26, 2024 Securities and Exchange Commission v. Kevin Crotty, No. 1:24-cv-3387 (N.D. Ill. Filed April 26, 2024) SEC Charges Former BP Senior Manager with Insider Trading The Securities and Exchange Commission today charged Chicago-area resident Kevin Crotty with insider trading ahead of a February 16, 2023 announcement that BP p.l.c. agreed to acquire TravelCenters of America Inc. This is the second insider trading case the SEC has brought in connection with trading ahead of the announcement of BP’s acquisition of TravelCenters. According to the SEC’s complaint, Crotty misappropriated material, nonpublic information from a BP colleague who was working on the acquisition. The SEC alleges that after learning that it was highly likely that the deal would close, Crotty purchased 848.824 shares of TravelCenters stock on February 15, 2023. The following day, TravelCenters announced the acquisition, which triggered a 70.8% increase in TravelCenters share price and generated for Crotty an unrealized gain of $30,667. The SEC’s complaint, filed in U.S. District Court for the Northern District of Illinois, charges Crotty with violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 10b-5 thereunder. Crotty has agreed to settle the SEC’s charges, and the settlement is subject to the court’s approval. Without denying the allegations in the SEC’s complaint, Crotty has agreed to consent to the entry of a final judgment permanently enjoining him from future violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, imposing an officer and director bar, and ordering him to pay disgorgement of $30,667, prejudgment interest of $1,274.50, and a civil penalty of $30,667. In a parallel action, the U.S. Attorney's Office for the Northern District of Illinois filed criminal charges against Crotty. The SEC’s ongoing investigation is being conducted by Julia Huseman and Jamie Haussecker of the Fort Worth Regional Office, under the supervision of Jim Etri and B. David Fraser. The litigation will be led by Jason Rose and supervised by Keefe Bernstein. The SEC appreciates the assistance of the Financial Industry Regulatory Authority and the U.S. Attorney’s Office for the Northern District of Illinois.