Securities Regulation Daily Wrap Up, FRAUD AND MANIPULATION—D. Del.: Engineer charged with insider trading on Three Mile Island project information, (Jun 25, 2026)
Organizations Mentioned:Atlantic National Life Insurance Co. | Constellation Energy | Constellation Energy Corp. | Francona Minerals Corp. | Microsoft Corp.
The individual obtained the confidential information during his employment with Constellation Energy.
The SEC charged a nuclear engineer formerly employed by Constellation Energy for trading on confidential information about Constellation’s Three Mile Island project. The Commission claimed that the illegal trading netted $1.4 million for the engineer. In a parallel criminal action, the DOJ announced an indictment charging the engineer with securities fraud (SEC v. Muggleston, No. 1:26-cv-00744 (D. Del. June 24, 2026)).
Power plant restart. The SEC alleged that in 2024 the engineer had access to confidential information about Constellation’s plan to potentially restart its nuclear power plant at Three Mile Island. The project, which was publicly announced in September 2024, involved a 20-year power purchase agreement between Constellation and Microsoft Corp. that would pave the way for Constellation to restart the nuclear power plant.
The complaint cites a May 2025 text from the engineer to his cousin saying that the project was gaining momentum, adding “I’m trying to think of how to profit off this so started looking for real estate in the area.... Let me know if you see anything or have any other ideas how to make some $ off of this.”
According to the SEC, what he did was purchase hundreds of call options in Constellation through his own brokerage account. He purchased the call options despite Constellation’s policies prohibiting insider trading and the purchase and sale of the company’s call options.
The Commission alleged that on the day of the public announcement of the project, the engineer sold 550 call option contracts he held in Constellation resulting in profits of nearly $1.4 million.
Violations. The SEC charged the engineer with violating the antifraud provisions of 1934 Act Section 10(b) and Rule 10b-5. The agency seeks an injunction, disgorgement with prejudgment interest, and a civil penalty.
The DOJ charged him with one count of securities fraud and four counts of insider trading. If convicted, the engineer faces a maximum penalty of 25 years in prison for the securities fraud count and 20 years in prison for each of the four insider trading counts.
The case is No. 1:26-cv-00744.
Attorneys: Sharan Lieberman for the SEC.
Companies: Constellation Energy Corp.; Microsoft Corp.
LitigationEnforcement: FraudManipulation