Securities Regulation Daily Wrap Up, FRAUD AND MANIPULATION—S.D.N.Y.: Three long-time friends charged with insider trading, (Aug 18, 2025)

By R. Jason Howard, J.D.

All three defendants consented to entry of an order against them with penalties to be determined at a later date.

The SEC has filed a complaint in the U.S. District Court for the Southern District of New York charging three long-time friends with engaging in insider trading from at least 2019 through 2024 which resulted in more than $500,000 in combined illegal profits (SEC v. Yedid, No. 1:25-cv-06704 (S.D.N.Y. Aug 14, 2025)).

Insider trading. The SEC press release explains that the lead defendant worked as a managing director at a consulting firm that “assists pharmaceutical and biotechnology companies with investor communications.” Through that role, the lead defendant was able to obtain material nonpublic information about the “firm’s clients—including drug test results, financial and regulatory information, and pending mergers and acquisitions.” The lead defendant would then share that material nonpublic information with the other defendants which allowed them to profit off trades in the securities of as many as six public companies.

Charges. All three defendants were charged with violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.

Relief sought. All three defendants each consented to the entry of an order permanently enjoining them from future violations and authorizing the court to determine at a later date the amount of disgorgement, prejudgment interest, and civil money penalties that each shall pay. The lead defendant also consented to a conduct-based injunction which bars him from associating with a broker or dealer, and a bar preventing him from serving as an officer or director of a public company.

The case is No. 1:25-cv-06704.

Attorneys: Daniel Joseph Maher for the SEC.

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