Dennis W. Hamilton, Insider Trading, Connecticut 2013

Dennis W. Hamilton, a 45-year-old executive from Norwalk, Connecticut, has been charged with insider trading, a serious crime that can result in severe penalties. According to the criminal complaint, Hamilton was employed as Vice President of Tax at Harman International Industries, Inc.

The complaint alleges that Hamilton purchased 17,000 shares of Harman International Industries stock on October 30, 2013, before a public announcement of positive earnings for the first quarter of fiscal year 2014. This resulted in a significant gain of $131,958, as the stock price increased from $72.02 to $81.02 on October 31, 2013.

Hamilton was arrested on a criminal complaint charging him with securities fraud-insider trading, an offense that carries a maximum term of imprisonment of 20 years. He appeared before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was released on a $2 million bond into home confinement with electronic monitoring.

The case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Heather Cherry. The Securities and Exchange Commission has also announced related civil charges against Hamilton in a parallel action.

The investigation found that Hamilton had access to material, non-public information about Harman’s financial results, including drafts of the company’s Form 10-Q filing and an earnings press release. He also participated in a conference call with Harman’s Audit Committee, during which a draft resolution declaring a quarterly cash dividend on Harman’s common stock was discussed.

Hamilton’s actions demonstrate a serious breach of trust and a disregard for the law. The consequences of insider trading can be severe, and it is essential that individuals who engage in such activities are held accountable.

The case highlights the importance of ensuring that individuals who have access to sensitive information do not use it for personal gain. It also underscores the need for effective regulations and enforcement mechanisms to prevent insider trading and protect investors.

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