Jai Sondhi
Jai Sondhi, No. 3:26-cv-01357
Jai Sondhi, a former Senior Director of Internal Audit at Canoo, Inc., engaged in insider trading by buying Canoo stock and call options using nonpublic information about a major EV contract, earning $54,965.23 in illicit gains before the public announcement triggered a 53% stock surge, and settled with the SEC by agreeing to pay over $125,000 in disgorgement, interest, and a civil penalty.
Jai Sondhi, a licensed CPA and former Senior Director of Internal Audit at Canoo, Inc., violated Section 10(b) of the Securities Exchange Act and Rule 10b-5 by trading on material nonpublic information about an impending major electric vehicle contract with a prominent retailer. In late June and early July 2022, he purchased Canoo common stock and call options despite company policy prohibiting such trades, and reaped $54,965.23 in illicit gains after Canoo’s stock jumped 53% upon public announcement on July 12, 2022. Without admitting or denying the allegations, Sondhi agreed to a settlement including permanent injunction, disgorgement of $54,965.23, $15,969.28 in prejudgment interest, and a $54,965.23 civil penalty.
Jai Sondhi, a licensed CPA and former Senior Director of Internal Audit at Canoo, Inc., allegedly engaged in insider trading by purchasing Canoo common stock and call options in late June and early July 2022, while in possession of material nonpublic information about an imminent major contract to sell thousands of electric vehicles to a prominent retailer. Despite company policies explicitly prohibiting such trades, Sondhi acted on this information, positioning himself to profit from the expected market reaction. On July 12, 2022, Canoo publicly announced the transaction, causing its stock price to surge 53% and generating $54,965.23 in illicit gains for Sondhi. The U.S. Securities and Exchange Commission filed a settled action against him in the Northern District of Texas, charging him with violations of Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934. Without admitting or denying the allegations, Sondhi consented to a final judgment that permanently enjoins him from future violations of these securities laws. He also agreed to disgorge the $54,965.23 in ill-gotten gains, pay $15,969.28 in prejudgment interest, and a civil penalty of $54,965.23, totaling over $125,000 in financial consequences. The SEC’s investigation was led by Joseph Zambuto, Jr., with supervision by Charles J. Felker and Pei Y. Chung, and received assistance from FINRA.
Extracted insights
- $55K $54,965 $10K–$100K
- $16K $15,969 $10K–$100K
- person charles j. felker
- person jai sondhi
- person pei y. chung
- agency Securities and Exchange Commission
- scheme_term settled insider trading action against jai sondhi
- agency the sec's investigation
- Securities And Exchange Commission filed settled insider trading action against Jai Sondhi
- Jai Sondhi learned Canoo was on the verge of entering into a major contract
- Jai Sondhi purchased Canoo common stock and call options
- Canoo announced transaction with the retailer
- Securities And Exchange Commission charged Jai Sondhi with violating Section 10(b) of the Securities Exchange Act of 1934
- Jai Sondhi agreed to pay disgorgement of $54,965.23
- Jai Sondhi agreed to pay prejudgment interest of $15,969.28
- Jai Sondhi agreed to pay civil penalty of $54,965.23
- Joseph Zambuto, Jr. conducted the SEC's investigation
- Charles J. Felker supervised the SEC's investigation
- Pei Y. Chung supervised the SEC's investigation
U.S. SECURITIES AND EXCHANGE COMMISSIONLitigation Release No. 26542 / April 29, 2026Securities and Exchange Commission v. Jai Sondhi, No. 3:26-cv-01357 (N.D. Tex. filed Apr. 28, 2026)SEC Files Settled Insider Trading Action Against Texas CPA and Former Internal Audit Head of Public CompanyOn April 28, 2026, the Securities and Exchange Commission filed a settled action against Jai Sondhi, a licensed CPA in Texas and the former Senior Director of Internal Audit and Controls at Canoo, Inc., for allegedly engaging in insider trading.According to the SEC’s complaint, in June 2022, Sondhi learned during internal meetings that Canoo was on the verge of entering into a major contract with a prominent retailer for Canoo to sell the retailer thousands of electric vehicles. The complaint alleges that Sondhi purchased Canoo common stock and call options in late June and early July 2022, while aware of this material nonpublic information and despite Sondhi knowing that company policy prohibited him from doing so. As further alleged, on July 12, 2022, Canoo publicly announced the transaction with the retailer, and its stock price increased 53%, resulting in ill-gotten gains to Sondhi totaling $54,965.23.The SEC’s complaint, filed in the United States District Court for the Northern District of Texas, charges Sondhi with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Without admitting or denying the allegations in the complaint, Sondhi consented to the entry of a final judgment, subject to court approval, in which he agreed to be permanently enjoined from violating Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and to pay disgorgement of $54,965.23, plus prejudgment interest of $15,969.28, and a civil penalty of $54,965.23. The SEC’s investigation was conducted by Joseph Zambuto, Jr., and supervised by Charles J. Felker and Pei Y. Chung with the assistance of Kevin John Byrne, Christopher Carney, David A. Nasse, and James Connor. The SEC appreciates the assistance of the Financial Industry Regulatory Authority.
U.S. SECURITIES AND EXCHANGE COMMISSIONLitigation Release No. 26542 / April 29, 2026Securities and Exchange Commission v. Jai Sondhi, No. 3:26-cv-01357 (N.D. Tex. filed Apr. 28, 2026)SEC Files Settled Insider Trading Action Against Texas CPA and Former Internal Audit Head of Public CompanyOn April 28, 2026, the Securities and Exchange Commission filed a settled action against Jai Sondhi, a licensed CPA in Texas and the former Senior Director of Internal Audit and Controls at Canoo, Inc., for allegedly engaging in insider trading.According to the SEC’s complaint, in June 2022, Sondhi learned during internal meetings that Canoo was on the verge of entering into a major contract with a prominent retailer for Canoo to sell the retailer thousands of electric vehicles. The complaint alleges that Sondhi purchased Canoo common stock and call options in late June and early July 2022, while aware of this material nonpublic information and despite Sondhi knowing that company policy prohibited him from doing so. As further alleged, on July 12, 2022, Canoo publicly announced the transaction with the retailer, and its stock price increased 53%, resulting in ill-gotten gains to Sondhi totaling $54,965.23.The SEC’s complaint, filed in the United States District Court for the Northern District of Texas, charges Sondhi with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Without admitting or denying the allegations in the complaint, Sondhi consented to the entry of a final judgment, subject to court approval, in which he agreed to be permanently enjoined from violating Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and to pay disgorgement of $54,965.23, plus prejudgment interest of $15,969.28, and a civil penalty of $54,965.23. The SEC’s investigation was conducted by Joseph Zambuto, Jr., and supervised by Charles J. Felker and Pei Y. Chung with the assistance of Kevin John Byrne, Christopher Carney, David A. Nasse, and James Connor. The SEC appreciates the assistance of the Financial Industry Regulatory Authority.