SEC Brings Insider Trading Complaint in Florida

On September 16th, 2024, the Securities and Exchange Commission (SEC) brought an insider trading complaint against multiple people in Florida. The SEC contends that Federico Nannini, Mauro Nannini, Alejandro Thermiotis, and Francisco Tonarely engaged in a seven figure insider trading scheme. Below, our Miami securities fraud lawyer discusses the allegations.

The Charges: Insider Trading 

The SEC filed a civil complaint in the United States District Court for the Southern District of Florida. The primary defendant is Federico Nannini—a resident of South Florida. Mr. Nannini reportedly worked for a financial consulting firm. Based on his inside position at that company, the SEC alleges that he had access to insider information regarding the acquisition of a company called Infrastructure and Energy Alternatives, Inc. (IEA). The company making the acquisition was MasTec Inc. (his firm’s client). MasTec Inc. is based in South Florida.

Mr. Nannini reportedly shared his insider information with his father (Mauro Nannini) and two other people, Mr. Thermiotis and Mr. Tonarely. Prior to the acquisition, Mr. Nannini (the father) bought more than 30,000 shares of IEA at a total price in excess of $300,000. The other two people also bought a large amount of IEA shares—more than $1.6 million in total. In July of 2022, the acquisition became public. The stock price of IEA jumped by more than 30 percent. Soon after, all parties dumped their shares. They made around $1.1 in illicit gains. The SEC is seeking disgorgement of ill-received gains and other penalties.

 What is Insider Trading? 

Insider trading is a serious securities law violation. It can result in both criminal liability and civil liability for the offender(s). Broadly speaking, insider trading happens when a person buys or sells stocks using information that the public does not know and cannot reasonably know. Most often, the  person works for the company or that has received secret information from someone who does. Acting on this hidden knowledge gives an unfair advantage over other investors. Insider trading is illegal because it damages trust in the financial markets.

 How Insider Trading Puts Investors at Risk

 Insider trading hurts investors by making the market unfair. Insiders use secret information to make profits or avoid losses that others cannot. When a person buys a stock or sells a stock, there is another investor on the other side of that transaction. In the case of insider trading, that other investors lack fair access to information. Indeed, regular investors make decisions without knowing all the facts. They depend on fair markets and transparent information to make informed choices.

 Contact Our Miami Securities Fraud Attorney Today

At ​Carlson & Associates, P.A., our Miami securities fraud lawyer is standing by, ready to protect your rights and your interests. If you or your family member sustained large investment losses due to any type of securities law violation, please do not hesitate to contact our law firm today. With an office in Miami, we advocate for investors rights all across South Florida.

Source:

sec.gov/enforcement-litigation/litigation-releases/lr-26108