(Updates to say an attorney for McGrath declined comment)
By Sarah N. Lynch
WASHINGTON, July 22 A New York-based investor
relations executive on Tuesday agreed to settle civil charges
that he illegally traded with inside information obtained while
preparing press releases for company clients, U.S. regulators
Kevin McGrath of Cameron Associates will pay a little more
than $25,000 in penalties, disgorgement and prejudgment
interest, the Securities and Exchange Commission said.
The SEC said McGrath will be banned permanently from trading
in the stock of any company that has received investor relations
services from Cameron Associates within a one-year period.
He is settling the case without admitting or denying the
Andrew Calamari, the head of the SEC's New York office, said
Tuesday that McGrath owed a duty to his clients to keep their
"McGrath's self-centered misconduct betrayed both his own
firm and his firm's clients whose confidential information he
exploited for personal gain," Calamari said.
An attorney for McGrath declined to comment.
Officials at Cameron Associates did not return a call
The SEC alleges McGrath sold his shares in Misonix Inc
when he learned the company planned to announce
disappointing financial results and bought stock in Clean Diesel
Technologies Inc before it announced positive
These actions let McGrath reap illegal profits and avoid
losses of more than $11,000, the SEC said.
(Reporting by Sarah N. Lynch; Editing by Bill Trott, Bernard