SEC v. Andreas Bechtolsheim, No. LR-26014, Northern District of California (June 3, 2024) — Press Release
raw: Andreas Bechtolsheim
Andreas Bechtolsheim, No. 5:24-cv-01845-PCP (June 3, 2024)
summary
Former Arista Networks Chairman Andy Bechtolsheim consented to a final judgment for insider trading involving Acacia options, resulting in a $923,740 penalty and a five-year officer/director bar.
paragraph
The SEC obtained a final judgment against Andreas Bechtolsheim for generating $415,726 in illegal profits through insider trading of Acacia options. Bechtolsheim allegedly used non-public information regarding Cisco's acquisition of Acacia to trade via the accounts of a relative and an associate. The settlement includes a civil monetary penalty of $923,740 and a five-year bar from serving as an officer or director of a public company.
narrative
The SEC has obtained a final judgment against Andreas "Andy" Bechtolsheim, the founder and former Chairman of Arista Networks, for insider trading. Bechtolsheim allegedly used material non-public information regarding Cisco's impending acquisition of Acacia to trade Acacia options through the accounts of a close relative and an associate. These illegal trades generated combined profits of $415,726 just before the acquisition was publicly announced. Without admitting or denying the allegations, Bechtolsheim consented to the judgment, which imposes a $923,740 civil monetary penalty. Additionally, the court entered an injunction against future violations of the Securities Exchange Act and barred him from serving as an officer or director of a public company for five years.
Classified insider-trading(confidence 99%). EDGAR detection: forms 4/3/5/144· recall 81% / precision 19%. detection rule →
Parties
Securities and Exchange CommissionAndreas Bechtolsheim
Keywords
bechtolsheimandreas bechtolsheimsecurities exchangemarket abuseacaciaandreasaristaexchange commissionarista networksandy bechtolsheiminsider tradingtechnology companyarista networks'straded acaciaacacia options
Exhibits & Attached Documents (2)
Extracted insights
Dollar amounts 2
- $924K $923,740 $100K–$1M
- $416K $415,726 $100K–$1M
Entities 4
- person andreas bechtolsheim
- scheme_term andreas bechtolsheim for insider trading
- agency Securities and Exchange Commission
- court u.s. district court for the northern district of california
Triples 10
- Securities And Exchange Commission obtained final judgment Andreas Bechtolsheim for insider trading
- Andreas Bechtolsheim traded Acacia options in the accounts of a close relative and an associate
- Andreas Bechtolsheim learned of Acacia's impending acquisition through his and Arista Networks's relationship with another multinational technology company
- Acacia and Cisco announced acquisition Cisco agreed to acquire Acacia
- Andreas Bechtolsheim generated illegal profits $415,726 in the accounts of his relative and associate
- U.S. District Court for the Northern District of California entered final judgment against Andreas Bechtolsheim by consent
- Securities And Exchange Commission enjoined Andreas Bechtolsheim from violating antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5
- Securities And Exchange Commission barred Andreas Bechtolsheim from serving as an officer or director of a public company for five years
- Securities And Exchange Commission ordered Andreas Bechtolsheim to pay a civil monetary penalty of $923,740
- Securities And Exchange Commission conducted investigation through John P. Mogg, Patrick McCluskey, John S. Rymas, and Ainsley Kerr
PDF (from attached: complaint)
Text layers
Extracted body text (2,254c)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26014 / June 3, 2024 Securities and Exchange Commission v. Andreas Bechtolsheim, Civ. Action No. 5:24-cv-01845-PCP (N.D. Cal. filed Mar. 26, 2024) SEC Obtains Final Judgment Against Former Arista Networks Chairman Andy Bechtolsheim for Insider Trading On May 30, 2024, the U.S. District Court for the Northern District of California entered a final judgment, by consent, against Andreas "Andy" Bechtolsheim, the founder and Chief Architect of Silicon Valley-based technology company Arista Networks, Inc., in an action alleging that Bechtolsheim engaged in insider trading. The SEC alleged in its complaint, filed on March 26, 2024, that Bechtolsheim, who was Arista Networks's chair at the time, illegally traded in Acacia options on July 8, 2019, after learning of Acacia's impending acquisition through his and Arista Networks's longstanding relationship with another multinational technology company that was also considering acquiring Acacia. Immediately after learning this information, Bechtolsheim allegedly traded Acacia options in the accounts of a close relative and an associate. The next day, July 9, 2019, before the market opened, Acacia and Cisco announced that Cisco had agreed to acquire Acacia. According to the SEC's complaint, Bechtolsheim's trading generated combined illegal profits of $415,726 in the accounts of his relative and associate. Without admitting or denying the allegations in the SEC's complaint, Bechtolsheim consented to the entry of the judgment which enjoins him from violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, bars him from serving as an officer or director of a public company for five years, and orders him to pay a civil monetary penalty of $923,740. The SEC's investigation was conducted by John P. Mogg of the Division of Enforcement's Market Abuse Unit in the San Francisco Regional Office with assistance from Patrick McCluskey, John S. Rymas, and Ainsley Kerr of the Market Abuse Unit's Analysis and Detection Center. The matter was supervised by Assistant Regional Director Rahul Kolhatkar and Market Abuse Unit Chief Joseph G. Sansone. SEC Complaint Final Judgment
OCR text (2,254c · html-text · 99% conf)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26014 / June 3, 2024 Securities and Exchange Commission v. Andreas Bechtolsheim, Civ. Action No. 5:24-cv-01845-PCP (N.D. Cal. filed Mar. 26, 2024) SEC Obtains Final Judgment Against Former Arista Networks Chairman Andy Bechtolsheim for Insider Trading On May 30, 2024, the U.S. District Court for the Northern District of California entered a final judgment, by consent, against Andreas "Andy" Bechtolsheim, the founder and Chief Architect of Silicon Valley-based technology company Arista Networks, Inc., in an action alleging that Bechtolsheim engaged in insider trading. The SEC alleged in its complaint, filed on March 26, 2024, that Bechtolsheim, who was Arista Networks's chair at the time, illegally traded in Acacia options on July 8, 2019, after learning of Acacia's impending acquisition through his and Arista Networks's longstanding relationship with another multinational technology company that was also considering acquiring Acacia. Immediately after learning this information, Bechtolsheim allegedly traded Acacia options in the accounts of a close relative and an associate. The next day, July 9, 2019, before the market opened, Acacia and Cisco announced that Cisco had agreed to acquire Acacia. According to the SEC's complaint, Bechtolsheim's trading generated combined illegal profits of $415,726 in the accounts of his relative and associate. Without admitting or denying the allegations in the SEC's complaint, Bechtolsheim consented to the entry of the judgment which enjoins him from violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, bars him from serving as an officer or director of a public company for five years, and orders him to pay a civil monetary penalty of $923,740. The SEC's investigation was conducted by John P. Mogg of the Division of Enforcement's Market Abuse Unit in the San Francisco Regional Office with assistance from Patrick McCluskey, John S. Rymas, and Ainsley Kerr of the Market Abuse Unit's Analysis and Detection Center. The matter was supervised by Assistant Regional Director Rahul Kolhatkar and Market Abuse Unit Chief Joseph G. Sansone. SEC Complaint Final Judgment