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SEC Alleges $18.5 Million Insider-Trading Scheme Tied to South Jersey Industries Deal
The SEC alleges former Bank of America banker Jason Satsky passed confidential South Jersey Industries deal information to Gavin Wolfe, who allegedly bought more than 2.2 million shares and made about $18.5 million wh... The SEC’s case points to the men’s close relationship, frequent communications and a November 20...
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- The SEC alleges former Bank of America banker Jason Satsky passed confidential South Jersey Industries deal information to Gavin Wolfe, who allegedly bought more than 2.2 million shares and made about $18.5 million wh...
- The SEC’s case points to the men’s close relationship, frequent communications and a November 2021 Duke–Kentucky basketball game as circumstantial evidence of an alleged tip.
- The regulator is seeking injunctions, disgorgement, financial penalties and industry or officer and director bars; Bank of America was not charged.
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openai.comCreate a landscape editorial hero image for this Studio Global article: What insider-trading allegations did the SEC make against former Bank of America senior investment banker Jason Satsky and his longtime frie. Article summary: The SEC alleges that Jason Satsky, then a senior Bank of America investment banker working on South Jersey Industries’ sale process, unlawfully tipped his close friend and former colleague Gavin Wolfe with material nonpu. Topic tags: general, government, news, general web. Style: premium digital editorial illustration, source-backed research mood, clean composition, high detail, modern web publication hero. Use reference image context only for broad subject, composition, and topical grounding; do not copy the exact image. Avoid: logos, brand marks, copyrighted characters, real person likenesses, fake screenshots, UI text, readable text, watermarks, charts with
The Securities and Exchange Commission alleges that former Bank of America investment banker Jason Satsky tipped his longtime friend and former colleague Gavin Wolfe with confidential information about South Jersey Industries’ potential sale. The SEC says Wolfe then built a large position in the company before its acquisition announcement and ultimately generated approximately $18.5 million in alleged illegal profits. 1
Both men deny wrongdoing. The case is a civil SEC complaint, so the allegations have not been proven in court. 1
What the SEC alleges
South Jersey Industries hired Bank of America in September 2021 to advise on a potential sale. According to the complaint, Satsky was involved in the process and owed duties of trust and confidence to the bank, South Jersey and its shareholders. The SEC alleges that he nevertheless shared material nonpublic information with Wolfe. 1
The regulator says the alleged personal benefit came from the men’s longstanding friendship, professional history, mutual favors and frequent communications. In the SEC’s account, those ties help explain why Satsky allegedly passed along confidential deal information. 1
The Duke–Kentucky game and the alleged trading pattern
A key piece of the SEC’s circumstantial case involves a Duke–Kentucky basketball game at Madison Square Garden on November 9, 2021. The complaint says Wolfe spent roughly three hours with Satsky at the game. Within minutes of its conclusion, Wolfe allegedly created a 12:12 a.m. calendar entry reading “SJi and njr” for the following morning. 1
The next day, the SEC says Wolfe transferred nearly $2.2 million into a trading account and directed his manager to begin buying South Jersey shares. Between November and December 2021, he allegedly purchased more than 2.2 million shares for at least $53 million through eight entities he owned or controlled. 1
The SEC describes the purchases as unusual for Wolfe because they were his first South Jersey investment and substantially exceeded his earlier individual public-stock investments. The complaint also alleges that Wolfe later tipped three friends or business associates, whose trading produced approximately $515,000 in additional unrealized profits. 1
How the acquisition affected the alleged profits
On February 24, 2022, South Jersey announced that it had agreed to be acquired by a private investment fund for $36 per share in a transaction valued at approximately $8.1 billion. The company’s stock rose about 40% that day. The SEC alleges that Wolfe’s position produced approximately $18.5 million in illegal profits. 1
The complaint further alleges that Satsky and Wolfe later tried to minimize or conceal the closeness and frequency of their relationship. Those communications and the timing of Wolfe’s purchases are part of the evidence the SEC cites in support of its insider-trading allegations. 1
What Satsky and Wolfe say
Satsky and Wolfe deny the SEC’s accusations. Their stated alternative explanation is that Wolfe’s investment came from his own analysis and a broader thesis about South Jersey and the utilities sector, rather than confidential information supplied by Satsky. 1
Satsky was terminated by Bank of America after the matter came to light. The bank was not charged, and the alleged conduct is described as personal conduct by Satsky and Wolfe—not wrongdoing undertaken by or involving Bank of America. 1
Penalties and remedies sought by the SEC
The SEC is seeking:
- Permanent injunctions barring future violations of the securities laws;
- Disgorgement of Wolfe’s alleged gains, plus prejudgment interest;
- Civil monetary penalties;
- Officer-and-director bars against both men;
- A bar preventing Satsky from associating with a broker or dealer; and
- Recovery from entities controlled by Wolfe that allegedly received proceeds from the trading.
1
The requested remedies will be decided through the legal process. Until the case is resolved, the SEC’s allegations—including the alleged tip, Wolfe’s trading motive and the claimed profits—remain contested. 1
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What is the short answer to "SEC Alleges $18.5 Million Insider-Trading Scheme Tied to South Jersey Industries Deal"?
The SEC alleges former Bank of America banker Jason Satsky passed confidential South Jersey Industries deal information to Gavin Wolfe, who allegedly bought more than 2.2 million shares and made about $18.5 million wh...
What are the key points to validate first?
The SEC alleges former Bank of America banker Jason Satsky passed confidential South Jersey Industries deal information to Gavin Wolfe, who allegedly bought more than 2.2 million shares and made about $18.5 million wh... The SEC’s case points to the men’s close relationship, frequent communications and a November 2021 Duke–Kentucky basketball game as circumstantial evidence of an alleged tip.
What should I do next in practice?
The regulator is seeking injunctions, disgorgement, financial penalties and industry or officer and director bars; Bank of America was not charged.
Sources
bloomberg.comSEC Accuses Ex-BofA Senior Banker Satsky of Insider Trading
energyconnects.comSEC Accuses Ex-BofA Senior Banker Satsky of Insider Trading
bankingdive.comSEC charges 2 former investment bankers with insider trading