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The man used his domestic partner's materials to learn of an acquisition before it was made public, case alleges
The United State Attorney’s Office, Eastern District of Pennsylvania, recently released the arrest of a Willow Grove man who allegedly used information brought home from his domestic partner to conduct insider trading.
A release from the United States Attorney Jacqueline C. Romero said that Carlos Sacanell, 58, of Willow Grove, was “arrested and charged by indictment with insider trading and making a false statement to a federal agency.”
The release, dated Oct. 31, alleges that Sacanell was able to obtain materials containing nonpublic information from his domestic partner who was an executive at Oak Street Health. The documents, authorities said, noted that CVS Health Corporation would acquire Oak Street Health back in 2023.
As both CVS and Oak Street Health were both publicly traded companies on the New York Stock Exchange, an investigation into the matter began last year. According to the release, Sacanell allegedly used materials that included nonpublic information to trade stock and options for Oak Street Health before the transaction was publicly announced by either company. The documents stated that Sacanell used this information on Feb. 8, 2023 to obtain profits of around $617,000.
Additionally, according to the release, the U.S. attorney alleged that Sacanell made false claims during an April 3, 2024 interview with the Federal Bureau of Investigation (FBI), when he said he did not obtain documents from his domestic partner for information regarding the planned acquisition prior to its public trade on Feb. 8, 2023.
If convicted, Sacanell could face a maximum sentence of 25 years in prison, said the attorney. This case was investigated by the FBI and will be prosecuted by the Assistant United States Attorney Francis A. Weber.
Parallelling the matter, the release said, the Securities and Exchange Commission also has announced charges against Sacanell.
“The SEC's complaint, filed in the U.S. District Court for the Eastern District of Pennsylvania, charges Sacanell with violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and seeks permanent injunctive relief, disgorgement plus prejudgment interest, a civil penalty, and an officer-and-director bar,” said the SEC release.
The SEC's investigation was conducted by Norman P. Ostrove, Patrick McCluskey, and Julia C. Green of the Enforcement Division's Market Abuse Unit and supervised by Joseph G. Sansone, Chief of the Market Abuse Unit, and Scott A. Thompson and Nicholas P. Grippo of the Philadelphia Regional Office.
The litigation will be led by Spencer Willig and supervised by Gregory Bockin of the Philadelphia Regional Office. The SEC appreciates the assistance of the United States Attorney's Office for the Eastern District of Pennsylvania and the FBI.
