ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
ADVERTISEMENT
Home Legal

ALJ Dismisses SEC Insider Trading Case

September 14, 2015
Reading Time: 2 mins read

Case: In re: Bolan, et al.

Issue: Whether the U.S. Securities & Exchange Commission (SEC) sufficiently proved that George T. Bolan, Jr., a former Wells Fargo research analyst, received a personal benefit after he gave Joseph C. Ruggieri, a former Wells Fargo trader, material, non-public information about rating changes on health care stocks.

Case Summary: The SEC’s insider trading enforcement action against former Wells Fargo senior trader Joseph C. Ruggieri was dismissed by its own administrative law judge on the grounds that the agency failed to prove that Ruggieri was tipped in exchange for a personal benefit.

The SEC brought an enforcement action against George T. Bolan, Jr., a former Wells Fargo research analyst, and Joseph C. Ruggieri, a former Wells Fargo senior trader, alleging that Bolan tipped Ruggieri with inside information contained in confidential research reports regarding upcoming rating changes of certain health care stocks. Ruggieri then used this “inside” information to earn over $117,000. The SEC argued that in exchange for the tips, Boland received career mentorship and positive feedback that improved Bolan’s chances of a promotion.

Following a twelve-day hearing, Judge Patil found that Ruggieri used Bolan’s tips, but dismissed the enforcement proceeding on the grounds that the SEC did not sufficiently prove that Bolan received a personal benefit, as required under United States v. Newman, 773 F.3d 438 (2d Cir. 2014) and the U.S. Supreme Court’s decision under Dirks v. SEC, 463 U.S. 646 (1983).

Judge Patil held that the SEC lacked circumstantial evidence to sufficiently link Ruggieri’s mentorship to Bolan’s tips, writing that “it was more plausible that Ruggieri’s feedback was genuine, and that Bolan sought feedback as a standard practice.” Judge Patil said that Bolan’s communications reflected his “longstanding disregard of compliance rules” with disclosing material, non-public information,” but found it was more likely that Bolan tipped Ruggieri simply because “he could not follow the rules and keep his mouth shut.”

Bottom Line: Boland settled with the SEC in May and paid a $75,000 penalty. Boland was not required to admit or deny misconduct and did not receive an industry bar.

ADVERTISEMENT
ShareTweetPin

Author

Thomas Pinder

Thomas Pinder

Thomas Pinder is senior vice president and deputy general counsel at ABA.

Related Posts

ABA urges ‘same risk, same regulation’ for digital assets

Proposed amendment would add Credit Card Competition Act to Senate stablecoin bill

Newsbytes
May 20, 2025

Sen. Roger Marshall (R-Kan.) has filed an amendment to add credit card network routing mandates to an unrelated bill establishing a regulatory framework for payment stablecoins.

FDIC withdraws proposed rules on brokered deposits, corporate governance, executive pay

FDIC rescinds 2024 bank merger policy

Newsbytes
May 20, 2025

The FDIC board unanimously voted to rescind a 2024 statement on bank mergers that expanded the factors taken under consideration when the agency reviews merger applications.

FDIC says banks need to correctly report uninsured deposits

FDIC provides update on Deposit Insurance Fund restoration

Compliance and Risk
May 20, 2025

DIF reserve ratio remains on track to reach the statutory minimum of 1.35% by year's end. Also, FDIC will explore changing how it calculates the DIF's exposure to losses.

ABA, associations urge lawmakers to finalize deal on debt ceiling

Resolution to overturn OCC bank merger rule clears House

Community Banking
May 20, 2025

The House voted in favor of a Senate resolution to overturn a 2024 final rule that changed how the OCC reviews proposed bank mergers. The legislation heads to President Trump for his signature.

ABA urges House lawmakers to support several banking-related bills

ABA urges House lawmakers to support several banking-related bills

Newsbytes
May 20, 2025

ABA expressed support for several bills under consideration by the House Financial Services Committee, including legislation on regulatory tailoring, reputational risk and bank merger applications.

OCC sees need for regulatory reform in bank merger process

First National Bank in South Dakota to buy Wyoming Bank & Trust

Community Banking
May 20, 2025

First National Bank in Fort Pierre, South Dakota, has agreed to buy Wyoming Bank & Trust in Cheyenne.

NEWSBYTES

Proposed amendment would add Credit Card Competition Act to Senate stablecoin bill

May 20, 2025

FDIC rescinds 2024 bank merger policy

May 20, 2025

FDIC provides update on Deposit Insurance Fund restoration

May 20, 2025

SPONSORED CONTENT

Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

April 25, 2025
Outsourcing: Getting to Go/No-Go

Outsourcing: Getting to Go/No-Go

April 5, 2025
Six Payments Trends Driving the Future of Transactions

Six Payments Trends Driving the Future of Transactions

March 15, 2025
AI for Banks: A Starter Guide for Community and Regional Institutions

AI for Banks: A Starter Guide for Community and Regional Institutions

March 1, 2025

PODCASTS

Podcast: Accelerating banking for quick-service restaurants

May 8, 2025

How a Georgia community bank supports government-guaranteed lending nationwide

May 1, 2025

Podcast: Quantum computing’s shakeup in payments, cybersecurity

April 24, 2025
ADVERTISEMENT

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2025 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2025 American Bankers Association. All rights reserved.