Jonathan Becker
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 25843 / September 21, 2023
Securities and Exchange Commission v. Jonathan Becker, No. 1:23-cv-08331 (S.D.N.Y. filed September 20, 2023)
SEC Announces Additional Charges in Scheme to Trade Ahead of Pharma Tender Offer
On September 20, 2023, the Securities and Exchange Commission filed insider trading charges against Jonathan Becker of Weehawken, New Jersey for trading on inside information unlawfully communicated to him by his then friend and roommate.
According to the SEC's complaint, filed in federal district court in Manhattan, Becker made approximately $266,000 from illegally trading in advance of the February 2021 announcement of a tender offer by Merck & Co., Inc. to acquire Pandion Therapeutics, Inc. The SEC's complaint alleges that Becker's then friend and roommate unlawfully communicated material nonpublic information about the impending acquisition to Becker after receiving a tip about the deal from his cousin, Seth Markin. As previously alleged in the SEC's July 25, 2022 complaint against Seth Markin and his friend Brandon Wong, Markin misappropriated confidential information about the planned tender offer from his then-romantic partner, who worked as an associate for a law firm representing Merck on the deal, and then traded on the material nonpublic information and tipped multiple other individuals. The SEC also previously charged Brandon Wong's brother and tippee Brian Wong in connection with the same scheme.
The SEC's complaint charges Becker with violations of the antifraud provisions of Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and of Exchange Act Rules 10b-5 and 14e-3 and seeks injunctive relief, disgorgement with prejudgment interest, and civil monetary penalties. Subject to court approval, Becker has consented to the entry of injunctive relief, with monetary remedies to be determined at a later date, upon a motion by the SEC.
The case originated from the SEC Enforcement Division's Market Abuse Unit Analysis and Detection Center, which uses data analysis tools to detect suspicious trading patterns.
The U.S. Attorney's Office for the Southern District of New York filed parallel criminal charges against Becker.
The SEC's investigation was conducted by Tracy Sivitz and John Rymas of the Market Abuse Unit and by Chevon Walker and Neil Hendelman of the New York Regional Office. This case has been supervised by Market Abuse Unit Chief Joseph G. Sansone. Mses. Sivitz and Walker will lead the SEC's litigation. The SEC appreciates the assistance of the U.S. Attorney's Office for the Southern District of New York, the Federal Bureau of Investigation, the Office of the Inspector General of the U.S. Department of Justice, and the Financial Industry Regulatory Authority.