First insider trading conviction based on misuse of 10b5-1 trading plans issued

The DOJ described the case as the first it has prosecuted exclusively based on a rule that allows company insiders to create a predetermined plan to sell shares.

The former CEO of a Nevada-based healthcare company has been convicted of insider trading in a landmark case involving the executive’s use of a safe harbor that, in this case, could not shield him from a jury conviction.

A Los Angeles jury found Terren Peizer, who also served as the

Free Trial

Register for free to keep reading.

To continue reading this article and unlock full access to GRIP, register now. You’ll enjoy free access to all content until our subscription service launches in early 2026.

  • Unlimited access to industry insights
  • Stay on top of key rules and regulatory changes with our Rules Navigator
  • Ad-free experience with no distractions
  • Regular podcasts from trusted external experts
  • Fresh compliance and regulatory content every day
Register for free Already a member? Sign in