SEC Secures Final Consent Judgment Against CPA and Day Trader for Insider Trading

USA: SEC Secures Final Consent Judgment Against CPA and Day Trader for Insider Trading

A federal court in New York entered a final consent judgment on Jan. 27, 2026, against Kevin A. Van de Grift, a certified public accountant and day trader, for alleged insider trading involving Verifone Systems.

Background of the Alleged Insider Trading

According to the SEC complaint, a former consultant for Francisco Partners Management, L.P., provided Van de Grift with material, nonpublic information about a potential acquisition of Verifone Systems, Inc. Acting on the tip, Van de Grift purchased 60,000 shares of Verifone stock between March 5 and March 9, 2018, and sold the entire position the day after the public announcement on April 9, 2018, realizing a profit of roughly $300,000.

Court Orders and Penalties

Without admitting or denying the allegations, Van de Grift consented to a permanent injunction barring future violations of Section 10(b) of the Securities Exchange Act and Rule 10b-5, a five‑year prohibition on serving as an officer or director of a public company, disgorgement of $298,000 with $69,022.67 in prejudgment interest, and a civil penalty of $298,000.

Administrative Settlement

In a separate administrative proceeding under Rule 102(e), Van de Grift agreed to a suspension that prevents him from appearing or practicing before the SEC as an accountant, with eligibility to apply for reinstatement after five years.

SEC Enforcement Team

The litigation was handled by Sharan Lieberman, Michael Cates, and James McDonald of the SEC’s Denver Regional Office, supervised by Gregory Kasper and Nicholas Heinke. The investigation was led by Michael Cates with assistance from Daniel Konosky and supervised by Ian Karpel and Nicholas Heinke, and it acknowledged cooperation from the Financial Industry Regulatory Authority.

Implications for Market Participants

The judgment underscores the SEC’s commitment to enforcing insider‑trading prohibitions and signals that professionals with access to confidential information remain subject to rigorous oversight.

Previous Related Actions

The SEC noted that the former consultant, identified as Friedman, previously settled the agency’s litigation concerning the same acquisition.

This report is based on information from SEC, licensed under Public Domain (U.S. Government Work). Source: Official U.S. Government release.