Ex-Hawthorne Exec Gets 35 Months for Insider Trading, Fraud

LOS ANGELES – Mark A. Loman, 60, of Hermosa Beach, was today sentenced to 35 months in federal prison for a brazen scheme that involved insider trading and securities fraud.

Loman, once vice president of finance and corporate controller at OSI Systems Inc., used his position to gain confidential financial data about the company. He then traded on this information, making illegal profits totaling approximately $475,000.

The former executive was found guilty by a jury on September 2 of four counts of securities fraud and four counts of insider trading. Judge Dale S. Fischer emphasized Loman’s betrayal of his employer and the market, noting that greed motivated his actions.

Loman exploited OSI’s financial underperformance in December 2015 to purchase options contracts, profiting as shares plunged following a public earnings miss. He also purchased stock in American Science & Engineering Inc., which OSI later acquired, netting himself another $120,000 in illegal gains.

In addition to the prison term, Loman has been ordered to pay a $600,000 fine. A lawsuit filed by the Securities and Exchange Commission against him is set for trial in April 2022.

The investigation into Loman’s criminal activities was conducted by the FBI, with Assistant United States Attorneys Scott Paetty and Karen E. Escalante of the Major Frauds Section handling the prosecution.