Key facts
- The SEC charged Jason Satsky, a former Bank of America senior investment banker, with insider trading.
- Satsky allegedly provided non-public information about South Jersey Industries' acquisition to his friend Gavin Wolfe.
- Wolfe, who runs Evergreen Capital, allegedly made $18.5 million in illegal profits by trading on this information.
- The alleged tipping occurred in late 2021, with the acquisition announced in February 2022.
- Both Satsky and Wolfe deny the SEC's allegations.
The U.S. Securities and Exchange Commission (SEC) has charged Jason Satsky, a former senior investment banker at Bank of America, with insider trading. The agency alleges that Satsky, who co-headed the bank's Americas power and renewable energy banking division, tipped off his longtime friend and former colleague Gavin Wolfe about a pending merger involving South Jersey Industries in late 2021.
Wolfe, who manages Evergreen Capital, allegedly used this non-public information to purchase over 2.2 million shares of South Jersey Industries' parent company for approximately $53 million. Following the announcement of an $8.1 billion buyout in February 2022, Wolfe reportedly realized a 36% gain, totaling $18.5 million in illegal profits.
The SEC claims that Satsky and Wolfe communicated multiple times about the potential acquisition, even during a college basketball game at Madison Square Garden. The lawsuit seeks to recover Wolfe's profits and impose civil penalties and officer-and-director bans on both individuals.
Satsky, 59, and Wolfe, 55, have denied the allegations. Satsky's lawyer stated that his client acted properly and will be vindicated, while Wolfe's lawyer asserted that his client's stock purchase was based on an independent investment thesis and that the SEC ignored exculpatory evidence.
Bank of America confirmed that Satsky is no longer employed by the company and was not accused of any wrongdoing. Wolfe was previously a senior banker at Credit Suisse before joining Bank of America with Satsky in 2012.