Tuesday, January 25 2022

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Washington, DC – (Newsfile Corp. – September 29, 2021) – The Securities and Exchange Commission today indicted Jose Luis Casero Sanchez, a Spanish national and former senior compliance analyst who worked in the Warsaw, Poland office, of ‘an international investment bank, with insider trading prior to at least 45 corporate events involving clients of investment banks. The SEC obtained an emergency court order to freeze Sanchez’s assets, including certain accounts he used to place illicit trades.

According to the SEC’s complaint, filed with the United States District Court for the Southern District of New York, Sanchez had wide access to highly sensitive information regarding mergers and other transactions in which his company was involved, in the part of his work as a compliance analyst. . Sanchez was given access to this information so that he could assist in the company’s efforts to ensure that employees keep information confidential and do not engage in insider trading. However, between September 2020 and May 2021, Sanchez reportedly abused this position of trust by trading on at least 45 events involving clients of investment banks based on material and non-public information from investment banks. To avoid detection, Sanchez reportedly traded multiple US-based brokerage accounts held in the name of one of his parents Jose Luis Casero Abellan and Maria Isabel Sanchez Gonzalez and, in most cases, also turned away. refrained from placing large trades and made only modest profits. The complaint alleges that Sanchez generated more than $ 471,000 in ill-gotten gains during the program.

Despite Sanchez’s alleged efforts to avoid detection by limiting the size of his trades and using four different accounts to trade under his parents’ names, the SEC’s in-depth analysis consolidated this pattern of suspicious trades and revealed serious breaches of duty by a compliance professional who exploited the sensitive information he was hired to protect. said Joseph G. Sansone, head of the SEC’s market abuse unit.

The SEC complaint accuses Sanchez of violating the anti-fraud provisions of federal securities laws and seeks a permanent injunction, restitution, pre-judgment interest and civil sanction. The SEC also indicted Sanchez’s parents, Abellan and Gonzalez, as backup defendants.

The SEC investigation was conducted by David W. Snyder and Christopher M. Colorado with assistance from John S. Rymas and Patrick A. McCluskey of the Enforcement Divisions Market Abuse Unit. The case was overseen by Assunta Vivolo, deputy director of the Philadelphia regional office, and Mr. Sansone. The litigation will be led by Mr. Snyder, Mr. Colorado and Christopher Kelly of the Philadelphia regional office. The SEC appreciates the help of the Financial Industry Regulatory Authority.


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