SEC v. Dhirenkumar Patel; and Ramesh Chitor, No. LR-26131, Southern District of New York (Sept. 26, 2024) — Press Release
raw: Bhardwaj et al.
Bhardwaj et al., No. 1:22-cv-06277 (S.D.N.Y. Sept. 26, 2024)
The SEC obtained final judgments against Dhirenkumar Patel and Ramesh Chitor for insider trading involving $1.6 million in illicit gains, resulting in a seven-and-a-half-year officer and director bar.
Dhirenkumar Patel and Ramesh Chitor were ordered to disgorge $423,074 and $1,244,801, respectively, for insider trading based on tips from Amit Bhardwaj. The defendants were charged with violating antifraud provisions of the Securities Exchange Act of 1934. The final judgments also impose a seven-and-a-half-year bar from serving as officers or directors of public companies.
The SEC has obtained final consent judgments against Dhirenkumar Patel and Ramesh Chitor for insider trading that generated over $1.6 million in illicit gains. Acting on tips from former Lumentum, Inc. employee Amit Bhardwaj, Patel traded ahead of the Coherent, Inc. acquisition, while Chitor traded ahead of the NeoPhotonics Corp. acquisition. Both defendants had previously pleaded guilty in parallel criminal actions. The SEC's final judgments permanently enjoin the pair from violating antifraud provisions of the Securities Exchange Act and bar them from serving as public company officers or directors for seven-and-a-half years. The court ordered the disgorgement of $423,074 for Patel and $1,244,801 for Chitor, with payments deemed satisfied by forfeiture orders from their criminal cases. This enforcement action originated from the SEC's Market Abuse Unit Analysis and Detection Center.
Extracted insights
- $1.60M $1.6 million $1M–$10M
- $1.24M $1,244,801 $1M–$10M
- $423K $423,074 $100K–$1M
- person dhirenkumar patel
- person final judgments
- person ramesh chitor
- agency Securities and Exchange Commission
- Securities And Exchange Commission Obtained Final Consent Judgments Against Dhirenkumar Patel And Ramesh Chitor
- Dhirenkumar Patel Traded In Advance Of Announcement Of Lumentum Inc. Acquisition Of Coherent Inc. On January 19, 2021
- Ramesh Chitor Traded In Advance Of Announcement Of Lumentum Inc. Acquisition Of NeoPhotonics Corp. On November 4, 2021
- Dhirenkumar Patel Pleaded Guilty In United States v. Patel (Parallel Criminal Action)
- Ramesh Chitor Pleaded Guilty In United States v. Chitor (Parallel Criminal Action)
- Dhirenkumar Patel And Ramesh Chitor Consented To Entry Of Final Judgments Permanently Enjoining Them From Violations
- Final Judgments Order Patel To Disgorge $423,074
- Final Judgments Order Ramesh Chitor To Disgorge $1,244,801
- Litigation Was Led By Joshua R. Geller And Lindsay S. Moilanen
- Litigation Was Supervised By Joseph G. Sansone And Preethi Krishnamurthy
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26131 / September 26, 2024 Securities and Exchange Commission v. Bhardwaj et al., No. 1:22-cv-06277 (S.D.N.Y. filed July 25, 2022) SEC Obtains Final Judgments Against Insider Trading Tippees On September 24, 2024, the Securities and Exchange Commission obtained final consent judgments against Dhirenkumar Patel and Ramesh Chitor, whom the SEC previously charged with insider trading that collectively generated ill-gotten gains of more than $1.6 million. The SEC’s complaint, filed on July 25, 2022, alleged that, acting on tips from their friend Amit Bhardwaj, a former Lumentum, Inc. employee, Patel traded in advance of the announcement of Lumentum’s acquisition of Coherent, Inc. on January 19, 2021, and Chitor traded in advance of the announcement of Lumentum’s acquisition of NeoPhotonics Corp. on November 4, 2021. The case originated from the SEC Enforcement Division’s Market Abuse Unit Analysis and Detection Center, which uses data analysis tools to detect suspicious trading patterns. Patel and Chitor, each of whom has pleaded guilty in the respective parallel criminal actions United States v. Patel, 22 Cr. 369 (VSB) (S.D.N.Y.) and United States v. Chitor, 22 Cr. 370 (LGS) (S.D.N.Y.), consented to entry of the final judgments in the SEC action permanently enjoining them from violations of the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and barring them from serving as officers or directors of public companies for a period of seven-and-a-half years. The final judgments also order Patel and Chitor to disgorge the illicit gains that they made in their own accounts and in other accounts that they controlled – $423,074 for Patel and $1,244,801 for Chitor – with prejudgment interest thereon, the payment of which was deemed satisfied by forfeiture orders entered in the parallel criminal actions. The litigation was led by Joshua R. Geller and Lindsay S. Moilanen of the Market Abuse Unit and supervised by Market Abuse Unit Chief Joseph G. Sansone and Preethi Krishnamurthy of the New York Regional Office.
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26131 / September 26, 2024 Securities and Exchange Commission v. Bhardwaj et al., No. 1:22-cv-06277 (S.D.N.Y. filed July 25, 2022) SEC Obtains Final Judgments Against Insider Trading Tippees On September 24, 2024, the Securities and Exchange Commission obtained final consent judgments against Dhirenkumar Patel and Ramesh Chitor, whom the SEC previously charged with insider trading that collectively generated ill-gotten gains of more than $1.6 million. The SEC’s complaint, filed on July 25, 2022, alleged that, acting on tips from their friend Amit Bhardwaj, a former Lumentum, Inc. employee, Patel traded in advance of the announcement of Lumentum’s acquisition of Coherent, Inc. on January 19, 2021, and Chitor traded in advance of the announcement of Lumentum’s acquisition of NeoPhotonics Corp. on November 4, 2021. The case originated from the SEC Enforcement Division’s Market Abuse Unit Analysis and Detection Center, which uses data analysis tools to detect suspicious trading patterns. Patel and Chitor, each of whom has pleaded guilty in the respective parallel criminal actions United States v. Patel, 22 Cr. 369 (VSB) (S.D.N.Y.) and United States v. Chitor, 22 Cr. 370 (LGS) (S.D.N.Y.), consented to entry of the final judgments in the SEC action permanently enjoining them from violations of the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and barring them from serving as officers or directors of public companies for a period of seven-and-a-half years. The final judgments also order Patel and Chitor to disgorge the illicit gains that they made in their own accounts and in other accounts that they controlled – $423,074 for Patel and $1,244,801 for Chitor – with prejudgment interest thereon, the payment of which was deemed satisfied by forfeiture orders entered in the parallel criminal actions. The litigation was led by Joshua R. Geller and Lindsay S. Moilanen of the Market Abuse Unit and supervised by Market Abuse Unit Chief Joseph G. Sansone and Preethi Krishnamurthy of the New York Regional Office.