“We used some of our latest advanced software to analyze trading data, as well as traditional investigative techniques, to piece together and expose the betrayal of trust alleged in our complaint," said Kelly L. Gibson, Associate Director of the SEC’s Philadelphia Regional Office. "We allege that Bustos had an obligation to keep her company’s information confidential until announced to our markets, yet she repeatedly tipped Blakstad and allowed him to take advantage of her position in return for expensive travel and luxury merchandise.”

In a parallel action, the U.S. Attorney’s Office for the Southern District of New York filed criminal charges against Bustos and Blakstad. 

The SEC’s complaint charges Bustos and Blakstad with knowingly or recklessly violating the antifraud provisions of the federal securities laws, and it is seeking permanent injunctions, disgorgement with prejudgment interest, and penalties.