2024-08-13 sec-litreleases litigation_release 64 KB 2,285 chars

SEC v. Robert Del Prete, No. LR-26073, District of New Jersey (Aug. 13, 2024) — Press Release

raw: Robert Del Prete

Robert Del Prete, No. LR-26073 (D.N.J. Aug. 13, 2024)

Caption: SEC v. Robert Del Prete

summary

Former HighCape accounting consultant Robert Del Prete received a final judgment for insider trading involving a merger with Quantum-Si Incorporated.

paragraph

Robert Del Prete was charged with insider trading after using confidential information from board meetings to trade HighCape Capital Acquisition Corp. shares. The illegal trades resulted in a $60,170 profit, leading to a final judgment requiring the payment of $67,182 in disgorgement and interest. The court also barred Del Prete from serving as an officer or director of a publicly traded company.

narrative

The SEC obtained a final consent judgment against Robert Del Prete, a former accounting consultant for HighCape Capital Acquisition Corp., for insider trading. Del Prete used non-public information obtained during board meetings to purchase HighCape shares just before the announcement of its merger with Quantum-Si Incorporated. These illegal trades generated an approximate 100% profit of $60,170. The court ordered Del Prete to pay $67,182 in disgorgement and prejudgment interest, which is satisfied by a forfeiture order from a parallel criminal case. In that criminal proceeding, Del Prete was sentenced to one year of probation and a $30,000 fine. Additionally, the judgment permanently enjoins him from violating securities laws and bars him from serving as an officer or director of any publicly traded company.

Enriched metadata

Scheme: insider-trading (100%)
Court: District of New Jersey
Outcome: charged · 2024-08-13
Disgorgement: $60,170
Entity: Robert Del Prete

Classified insider-trading(confidence 100%). EDGAR detection: forms 4/3/5/144· recall 81% / precision 19%. detection rule →

Extracted insights

Dollar amounts 5

$67K $67,182 $10K–$100K
$60K $60,170 $10K–$100K
$60K $60,170 $10K–$100K
$30K $30,000 $10K–$100K
$7K $7,012 <$10K

Entities 6

person final judgment
person robert del prete
scheme_term robert del prete with insider trading
agency Securities and Exchange Commission
location United States
court u.s. district court for the district of new jersey

Triples 11

Securities And Exchange Commission charged Robert Del Prete with insider trading
Robert Del Prete bought shares of HighCape Capital Acquisition Corp. on February 17, 2021
Robert Del Prete liquidated his position in HighCape shares after the February 18, 2021, press release
Robert Del Prete realized a profit of $60,170 from illegal trading
U.S. District Court for the District of New Jersey entered a final consent judgment against Robert Del Prete
Final Judgment enjoins Robert Del Prete from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5
Final Judgment bars Robert Del Prete from acting as an officer or director of a publicly traded company
Final Judgment orders Robert Del Prete to pay disgorgement of $60,170 plus prejudgment interest of $7,012
United States entered a forfeiture order against Robert Del Prete in United States v. Del Prete, No. 23-cr-745
Court in the criminal case sentenced Robert Del Prete to one year probation including three months of home detention
Court in the criminal case ordered Robert Del Prete to pay a $30,000 fine

View original SEC litigation releasesec.gov

Extracted body text (2,285c)

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26073 / August 13, 2024 Securities and Exchange Commission v. Robert Del Prete., No. 23-CV-20452 (MAS) (DEA) (D.N.J. filed Sept. 18, 2023) SEC Obtains Final Judgment Against Former SPAC Accounting Consultant Charged with Insider Trading On August 9, 2024, the U.S. District Court for the District of New Jersey entered a final consent judgment against Robert Del Prete. The SEC had charged Del Prete with insider trading when he purchased shares of HighCape Capital Acquisition Corp. (“HighCape”), a special purpose acquisition company, in advance of the company’s announcement that it would merge with Quantum-Si Incorporated (“QSI”). The SEC’s complaint, filed on September 18, 2023, alleged that Del Prete, an accounting consultant to HighCape, was present at HighCape’s board meetings on January 27 and February 17, 2021, at which the planned merger with QSI was discussed. As alleged in the complaint, Del Prete, who had agreed to keep HighCape’s proprietary information confidential, bought shares of HighCape on February 17, 2021, less than an hour after attending the board meeting that day. The complaint further alleged that, within hours of HighCape’s February 18, 2021, press release announcing the deal, Del Prete liquidated his position, realizing an approximate one-hundred percent profit of $60,170 from his illegal trading. The final judgment enjoins Del Prete from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, bars him from acting as an officer or director of a publicly traded company, and orders him to pay disgorgement in the amount of $60,170, plus prejudgment interest of $7,012, for a total of $67,182, which shall be deemed satisfied by the forfeiture order entered against Del Prete in the parallel criminal case, United States v. Del Prete, No. 23-cr-745 (ZNQ) (D.N.J. filed Sept. 18, 2023). On April 2, 2024, the court in the criminal case sentenced Del Prete to one year probation, including three months of home detention with location monitoring, and ordered him to pay a $30,000 fine. The SEC’s litigation was led by Ibrahim Sajalieu Bah and Paul Gizzi of the New York Regional Office and was supervised by Celeste Chase and Thomas P. Smith, Jr.

OCR text (2,285c · html-text · 99% conf)