Former CEO sentenced to prison for stock trades in milestone case
Briefly

Terren Scott Peizer, former CEO of Ontrak, was sentenced to 42 months in prison for insider trading related to Rule 10b5-1 trading plans. This case marks the first of its kind. Peizer reportedly sold Ontrak stock to avoid substantial losses as news of a major client loss approached, despite claiming no wrongdoing. The case highlights a new precedent in enforcement of trading plans, as Peizer was ordered to pay $17.9 million in fines and restitution after the authorities proved he had illicitly profited by selling shares before the stock value dropped.
Peizer was sending increasingly frantic text messages to a confidante and Ontrak executives about the potential loss of a major client in the months before he set up a trading plan to sell Ontrak stock.
Peizer avoided $12.5 million in stock losses by selling his shares before certain information was made public and the stock price dropped more than 40%, authorities said.
Read at Fortune
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