Vlad B. Spivak, et al.

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 23797 / April 3, 2017

SEC v. Vlad B. Spivak, et al., No. 1:15-cv-13704 (D. Mass. April 3, 2017)

Court Orders Boston Area Resident to Pay Over $590,000 in Insider Trading Action

On April 3, 2017, the SEC obtained a final judgment against defendant Vlad B. Spivak, a Boston area resident, in an insider trading action, ordering him to pay more than $590,000 in monetary sanctions.

The SEC's complaint, filed in federal court in Boston, Mass. on November 2, 2015, alleged that, in 2011, Vlad B. Spivak traded in the securities of American Dental Partners, Inc. (ADPI) on the basis of tips of material nonpublic information that he received from his then-romantic partner, Shirmila O. Doddi, who was employed as a financial analyst at a commercial bank. Doddi allegedly provided Spivak with material, nonpublic information she obtained through her position at the bank concerning ADPI's impending acquisition by a private equity firm and, based on this alleged unlawful tip, Spivak traded in ADPI securities and obtained illegal profits of over $222,000. Doddi did not trade in ADPI stock.

The SEC's complaint charged Spivak and Doddi with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The final judgment against Spivak, which was entered by the Honorable F. Dennis Saylor IV of the United States District Court for the District of Massachusetts, permanently enjoins Spivak from future violations of the charged provisions of the federal securities laws. The judgment also orders him to pay disgorgement of $222,357 - representing his illegal profits - plus prejudgment interest, and a civil penalty in the amount of $333,535, which equals 150 percent of his profits. Spivak consented to the entry of the final judgment. The court's entry of the final judgment against Spivak concludes this litigation.

Doddi previously settled the SEC's charges against her by agreeing to the entry of a final judgment that permanently enjoined her from violating the charged provisions of the federal securities laws and deferred consideration of monetary sanctions until the conclusion of the litigation against Spivak. As a result of Doddi's significant cooperation in the SEC's investigation and litigation, and in light of the final judgment ordering Spivak to pay full disgorgement of the illegally gained profits, the SEC will not seek monetary sanctions against Doddi.

The SEC's investigation was conducted by Jason Litow with assistance from Kevin Gershfeld in the Office of Market Intelligence-Surveillance. The investigation was supervised by Yuri B. Zelinsky and Antonia Chion. The SEC's litigation was conducted by Jan Folena and John Worland. The SEC acknowledges the assistance and cooperation of the Financial Industry Regulatory Authority.