Ex-CEO sentenced in first prosecution for stock sales via 10b5-1 trading plans

DOJ says he avoided $12.5m+ in losses by trading pursuant to two Rule 10b5-1 trading plans while allegedly in possession of MNPI.

A federal judge in California has sentenced Ontrak Inc CEO and founder Terren Peizer to three and a half years in prison in a groundbreaking $20m insider trading case.

The sentence followed an insider trading conviction on accusations that he based a $20m share sale on material nonpublic information (MNPI)

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