| June 10
June 10 A former senior editor at TheStreet Inc
has agreed to pay $10,225 to resolve claims he
participated in an insider trading ring involving a group of
high school friends, the U.S. Securities and Exchange Commission
The SEC's case against Michael Baron, 43, followed a related
criminal prosecution of six other men involved in an insider
trading scheme focused on pharmaceutical and medical technology
Baron was never criminally charged. But in a civil lawsuit
filed in New Jersey on Tuesday, the SEC said Baron provided a
relative illegal tips about Celgene Corp's 2007
acquisition of Pharmion Corp and Stryker Corp's tender
offer for Orthovita Inc in 2011.
The unnamed relative traded on the information and made more
than $6,500 in ill-gotten gains, the SEC said.
The SEC said the tip about the Celgene-Pharmion deal came
from John Lazorchak, at the time an employee in Celgene's
financial reporting department and a high school friend of
The tip about Stryker's offer, meanwhile, came from Mark
Foldy, an employee in its marketing department who likewise
attended high school with Baron, the SEC said.
The SEC does not in its lawsuit name TheStreet, saying only
that Baron, a Belford, New Jersey, resident, was a "former
senior editor at a financial publication." His employment had
previously been reported by The Wall Street Journal.
Representatives for Baron and the TheStreet did not respond
to a request for comment.
Lazorchak was sentenced in April to 1-1/3 years in prison
after pleading guilty to conspiracy and securities fraud
Foldy that same month was sentenced to two years supervised
release, with six months of home confinement, after pleading
guilty to conspiracy and securities fraud charges.
Four other men also pleaded guilty in the criminal case, and
the SEC charged an eighth man civilly as well.
Among those to plead guilty were Lawrence Grum and Michael
Castelli, the two main traders in the case. Grum was sentenced
in April to one year and one day in prison, while Castelli, a
high school classmate, received nine months.
The case is Securities and Exchange Commission v. Baron,
U.S. District Court, District of New Jersey, No. 14-3699.
(Reporting by Nate Raymond in New York; Editing by Cynthia