Ex-StoneX exec fined $160K for insider trading in Gain Capital deal
Joseph Conlan, a former executive at StoneX Financial (previously known as INTL FCStone, Inc.), has reached a settlement with the Securities and Exchange Commission (SEC) over insider trading charges.
Conlan, who resides in Chatham, New Jersey, faced accusations of trading in GAIN Capital Holdings, Inc. (GCAP) securities ahead of the public disclosure of its acquisition by StoneX Financial.
The SEC’s order detailed that Conlan, while serving as the Global Head of FX Sales at INTL until August 2018, obtained confidential information regarding the acquisition from a close friend and former colleague on February 19, 2020. Allegedly using this insider knowledge, Conlan purchased GCAP stock the same day.
Following the acquisition announcement on February 27, 2020, GCAP’s stock price surged by approximately 66%, leading to a reported profit of $73,627.47 for Conlan. The SEC determined that Conlan’s actions breached antifraud laws.
Conlan has an extensive background in foreign exchange, accumulating over 25 years of experience in the field. Most recently, he held the position of Global Head of Sales at the digital currency startup, San Juan Mercantile Bank. Before that, he led the FX sales team at INTL FCStone for 11 years. Earlier in his career, Conlan played a pivotal role in transitioning the CME’s FX futures from the Exchange Floor to the e-trading platform Globex. He also held senior FX sales positions at EBS, Congotec, Integral, and Currenex.
In the settlement, Conlan neither admitted nor denied the SEC’s findings. The terms of the settlement include a cease-and-desist order, a five-year prohibition from serving as an officer or director of any public company, and financial penalties totaling $159,389.35. This sum comprises $73,627.47 in disgorgement, $12,134.41 in prejudgment interest, and a civil penalty of $73,627.47.
The SEC’s investigation was led by Derek M. Schoenmann and Lindsay Moilanen from the Enforcement Division’s Market Abuse Unit, along with James D’Avino from the New York Regional Office. The Financial Industry Regulatory Authority (FINRA) also received acknowledgment for its assistance in this investigation.