Steven M. Dombrowski, Securities Fraud, Illinois 2023

CHICAGO — A certified public accountant who was involved in the auditing process at a publicly-traded company based in Chicago was indicted on federal fraud charges for allegedly engaging in insider trading of the company's securities that made him an illegal profit of more than $286,000 in 2012.

The defendant, STEVEN M. DOMBROWSKI, who was the director of corporate audit for Allscripts Healthcare Solutions, Inc., was charged with 16 counts of securities fraud in an indictment that was returned by a federal grand jury yesterday and announced today.

Dombrowski, 49, of Chicago, will be arraigned on the criminal charges on a date yet to be determined in Federal Court.

According to the indictment, Dombrowski misused material nonpublic information he knew about Allscripts' performance for the first quarter of 2012 and purchased put options and engaged in short sales of stock through a trading account in his wife's maiden name that he controlled, which resulted in illegal profits of approximately $286,211. The indictment seeks forfeiture of that amount from Dombrowski.

Dombrowski and the employees he supervised were responsible for auditing and testing the processes and procedures Allscripts used to compute and report its financial performance. Allscripts provides information technology solutions to the healthcare industry and its common stock is traded on the NASDAQ stock market under the symbol MDRX.

Between April 10 and April 28, 2012, a quarterly blackout period was in effect at Allscripts. The blackout prohibited certain employees, including Dombrowski, who were given written notice and who had access to material nonpublic information, from engaging in insider trading 15 days before the end of a quarter and ending after the second full business day following the company's quarterly earnings announcement.

Each count of securities fraud carries a maximum penalty of 20 years in prison and a $5 million fine, and restitution is mandatory. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.

Source: https://www.justice.gov/usao-ndil/pr/us-indicts-corporate-audit-director-securities-fraud-charges-allegedly-profiting-286000