SEC v. Jack Brewer

Jack Brewer allegedly engaged in insider trading in the securities of COPsync, Inc. According to the SEC's complaint, Brewer obtained material, nonpublic information about COPsync's plans to do a stock offering through his work providing consulting and endorsement services to COPsync. According to the complaint, Brewer participated in the offering, and the purchase agreement contained a clause obligating him not to sell any COPsync shares before the company announced the offering to the public. Additionally, a consulting agreement with COPsync allegedly required Brewer to maintain in confidence all proprietary, non-published information concerning COPsync and not to use such information for his own benefit. Nonetheless, Brewer allegedly sold his COPsync shares before the company announced the stock offering and, as a result, profited by approximately $35,000 more than he would have had he sold his shares after COPsync issued its press release. The SEC’s complaint charged Brewer with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5.

Summary generated from official Securities and Exchange Commission press release