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Former Pinnacle Director Pleads Guilty to Insider Trading
James Cope, 67, of Murfreesboro, Tenn., pleaded guilty to insider trading in connection with Pinnacle’s 2016 acquisition of Avenue Financial Holdings Inc.
Cope, a licensed attorney with more than 20 years of experience as a bank director, was a member of the Board of Directors of Pinnacle and served as Chair of the Pinnacle Board of Directors Compensation Committee. He also previously served as Lead Director for Pinnacle.
Pinnacle maintained and enforced a policy prohibiting insider trading by its employees and directors. Under Pinnacle’s “Statement of Policy on Prevention of Insider Trading,” utilization of inside information to transact personal investment decisions was expressly forbidden.
In December 2015, executives of Pinnacle and Avenue began discussions regarding a potential acquisition of Avenue by Pinnacle. On December 1, 2015, the Executive Committee of Pinnacle’s Board of Directors, including Cope, was informed by Pinnacle’s CEO that he had reached out to executives at Avenue to express interest in a merger between Pinnacle and Avenue.
Cope pleaded guilty to abusing his position of trust as a member of Pinnacle’s board of directors to make a quick profit.
“Mr. Cope abused his position of trust as a member of Pinnacle’s board of directors to make a quick profit,” said Acting United States Attorney Jack Smith. “His actions undermine the investing public’s confidence in our securities markets. This office will continue to vigorously investigate and prosecute all manner of securities fraud in the Middle District of Tennessee.”
The United States Securities and Exchange Commission today announced civil charges against Cope.
Cope purchased 6,179 shares of Avenue stock on January 5, 2016, and another 4,000 shares on January 11, 2016, after learning the information regarding Pinnacle’s interest and efforts to acquire Avenue. The approximate price per share for these purchased shares was $13.81.
Cope’s actions have been described as “unfair, fraudulent and illegal” by Michael T. Gavin, Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation.
The FBI will continue to work to detect, disrupt and dismantle these types of schemes, Gavin said.
James Cope, Insider Trading, Tennessee 2023
Defendant: James Cope
Criminal Charge: Insider Trading
City and State: Murfreesboro, Tennessee
Exact Date: Not specified
Sentence or Outcome: Guilty plea
Dollar Amounts: $13.81 per share, 6,179 shares, and 4,000 shares
Key Facts
- State: Tennessee
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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