2022-07-07 sec-litreleases litigation_release 65 KB 2,265 chars

SEC v. Doron A. Tavlin; Afshin Farahan; and David J. Gantman, No. LR-25439, District of Minnesota (July 7, 2022) — Press Release

raw: Doron A. Tavlin, Afshin Farahan, and David J. Gantman

Doron A. Tavlin, Afshin Farahan, and David J. Gantman, No. LR-25439 (July 7, 2022)

Caption
SEC v. Doron A. Tavlin, et al.
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summary

Doron A. Tavlin, former VP of Mazor Robotics, tipped friends Afshin Farahan and David J. Gantman, who made $503,100 in insider trading profits, and faced SEC charges.

paragraph

The SEC charged Doron A. Tavlin, Afshin Farahan, and David J. Gantman with insider trading related to Mazor Robotics' 2018 acquisition by Medtronic plc. Farahan and Gantman made approximately $247,500 and $255,600 in illegal profits, respectively. Tavlin received a $25,000 kickback from Farahan for the tip.

narrative

The SEC charged Doron A. Tavlin, former Vice President, Business Development of Mazor Robotics Ltd., and his friends Afshin Farahan and David J. Gantman with insider trading related to Mazor's 2018 acquisition by Medtronic plc. Tavlin tipped Farahan, who used the information to buy Mazor stock and also tipped Gantman, enabling both to profit from illicit trades. Farahan made approximately $247,500 and Gantman made $255,600 in illegal profits. Tavlin later received a $25,000 kickback from Farahan. The SEC alleges violations of Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934. The SEC used data analysis tools to uncover the scheme and is seeking permanent injunctions, disgorgement with interest, civil penalties, and an officer-and-director bar against Tavlin. The case was investigated by the SEC's Market Abuse Unit with assistance from FINRA.

Enriched metadata

Scheme
insider-trading (100%)
Court
District of Minnesota
Victim loss
$500,000
Entity
Doron A. Tavlin
Classified insider-trading(confidence 100%). EDGAR detection: forms 4/3/5/144· recall 81% / precision 19%. detection rule →
Statutes
Section 10(b) of the Securities Exchange ActRule 10b-5
Parties
Securities and Exchange CommissionDoron A. TavlinAfshin FarahanDavid J. Gantman
Keywords
farahantavlindoron tavlinafshin farahandavid gantmanmarket abusegantmantavlin afshinfarahan davidsecurities exchangeabuse unitdavidsectradingsec's

Exhibits & Attached Documents (1)

Extracted insights

Dollar amounts 4
  • $500K $500,000 $100K–$1M
  • $256K $255,600 $100K–$1M
  • $248K $247,500 $100K–$1M
  • $25K $25,000 $10K–$100K
Entities 11
  • person afshin farahan
  • person david j. gantman
  • person David Makol
  • person Diana Tani
  • scheme_term doron a. tavlin a kickback of $25,000
  • person Joseph Sansone
  • person mazor stock
  • person sara kalin
  • agency Securities and Exchange Commission
  • person stephen kam
  • company vice president, business development of mazor robotics ltd.
Triples 18
  • Securities And Exchange Commission filed charges against Doron a. Tavlin, Afshin Farahan, and David J. Gantman
  • Doron a. Tavlin served as Vice President, Business Development of Mazor Robotics Ltd.
  • Doron a. Tavlin tipped Afshin Farahan regarding Mazor's impending acquisition by Medtronic
  • Afshin Farahan used information to buy Mazor stock
  • Afshin Farahan tipped David J. Gantman
  • David J. Gantman purchased Mazor stock and call options
  • Afshin Farahan made about $247,500 in illegal trading profits
  • David J. Gantman made approximately $255,600 in illegal trading profits
  • Doron a. Tavlin asked Afshin Farahan for money in exchange for Mazor information
  • Afshin Farahan paid Doron a. Tavlin a kickback of $25,000
  • Securities And Exchange Commission charged Tavlin, Farahan, and Gantman with violating Section 10(b) of the Securities Exchange Act of 1934
  • Securities And Exchange Commission is seeking permanent injunctions, disgorgement, prejudgment interest, and civil penalties
  • Securities And Exchange Commission is seeking an officer-and-director bar against Doron a. Tavlin
  • Sara Kalin conducted the investigation
  • David Makol assisted the investigation
  • Diana Tani supervised the case
  • Joseph Sansone supervised the case
  • Stephen Kam will lead the litigation
PDF (from attached: complaint)
Tavlin (“Tavlin”), Afshin Farahan (“Farahan”), and David J. Gantman (“Gantman”) · Source
Text layers
Extracted body text (2,265c) 
SEC Charges Former Business Development Executive and Two Friends with Insider Trading Litigation Release No. 25439 / July 7, 2022 Securities and Exchange Commission v. Doron A. Tavlin, Afshin Farahan, and David J. Gantman, No. 22-cv-01723 (D. Minn. filed July 6, 2022) The Securities and Exchange Commission filed insider trading charges yesterday against Doron A. Tavlin, the former Vice President, Business Development of Mazor Robotics Ltd., and two friends who made more than $500,000 in profits from trading in advance of Mazor's announcement that it would be acquired by Medtronic plc. According to the SEC's complaint, filed in federal court in Minnesota, Tavlin tipped his friend Afshin Farahan regarding Mazor's impending acquisition by Medtronic. The complaint alleges that Farahan used the information to buy Mazor stock and also tipped his friend, David J. Gantman, who purchased Mazor stock and call options in advance of the September 20, 2018 acquisition announcement. The SEC alleges that Farahan made about $247,500 in illegal trading profits, and Gantman made approximately $255,600. According to the complaint, in October 2019, Tavlin asked Farahan for money in exchange for the Mazor information, and Farahan paid him a kickback of $25,000. The SEC's Market Abuse Unit used data analysis tools to uncover the defendants' timely and profitable trading. The SEC's complaint charges Tavlin, Farahan, and Gantman with violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC is seeking permanent injunctions, disgorgement plus prejudgment interest, and civil penalties against all three defendants, and is seeking an officer-and-director bar against Tavlin. The SEC's investigation was conducted by Sara Kalin of the Market Abuse Unit, with assistance from David Makol of the Market Abuse Unit's Analysis and Detection Center, and the SEC's Office of Investigative and Market Analytics. The case was supervised by Assistant Regional Director Diana Tani and Market Abuse Unit Chief Joseph Sansone. The litigation will be led by Stephen Kam of the Los Angeles Regional Office. The SEC appreciates the assistance of the Financial Industry Regulatory Authority (FINRA). SEC Complaint
OCR text (2,265c · html-text · 99% conf) 
SEC Charges Former Business Development Executive and Two Friends with Insider Trading Litigation Release No. 25439 / July 7, 2022 Securities and Exchange Commission v. Doron A. Tavlin, Afshin Farahan, and David J. Gantman, No. 22-cv-01723 (D. Minn. filed July 6, 2022) The Securities and Exchange Commission filed insider trading charges yesterday against Doron A. Tavlin, the former Vice President, Business Development of Mazor Robotics Ltd., and two friends who made more than $500,000 in profits from trading in advance of Mazor's announcement that it would be acquired by Medtronic plc. According to the SEC's complaint, filed in federal court in Minnesota, Tavlin tipped his friend Afshin Farahan regarding Mazor's impending acquisition by Medtronic. The complaint alleges that Farahan used the information to buy Mazor stock and also tipped his friend, David J. Gantman, who purchased Mazor stock and call options in advance of the September 20, 2018 acquisition announcement. The SEC alleges that Farahan made about $247,500 in illegal trading profits, and Gantman made approximately $255,600. According to the complaint, in October 2019, Tavlin asked Farahan for money in exchange for the Mazor information, and Farahan paid him a kickback of $25,000. The SEC's Market Abuse Unit used data analysis tools to uncover the defendants' timely and profitable trading. The SEC's complaint charges Tavlin, Farahan, and Gantman with violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC is seeking permanent injunctions, disgorgement plus prejudgment interest, and civil penalties against all three defendants, and is seeking an officer-and-director bar against Tavlin. The SEC's investigation was conducted by Sara Kalin of the Market Abuse Unit, with assistance from David Makol of the Market Abuse Unit's Analysis and Detection Center, and the SEC's Office of Investigative and Market Analytics. The case was supervised by Assistant Regional Director Diana Tani and Market Abuse Unit Chief Joseph Sansone. The litigation will be led by Stephen Kam of the Los Angeles Regional Office. The SEC appreciates the assistance of the Financial Industry Regulatory Authority (FINRA). SEC Complaint

Related documents (1)