The Work

December 8, 2010 4:31 PM

Ex-IT Employee for Delaware Firm Charged with Insider-Trading

Posted by Brian Baxter

UPDATE: 12/9/10, 12:00 p.m. The Legal Intelligencer, a sibling publication, has more on the charges against Temple.

A year after a federal insider trading sting kept the white-collar practices of a few Am Law 200 firms humming along, the latest sweep has claimed a former law firm technology manager and his brother-in-law.

The SEC announced on Tuesday that Jeffery Temple, 40, a former law firm information systems and security manager in Wilmington, had illegally accessed data through his position at the firm and traded on that information. The SEC, which did not identify Temple's employer, has accused him of tipping off his brother-in-law, Benedict Pastro, to the scheme. The two allegedly reaped $182,000 in illegal profits.

The Philadelphia Inquirer reports that Temple worked at Delaware shop Richards, Layton & Finger. The firm confirmed in a statement to the paper that Temple was a former employee and said that if true, the SEC allegations indicate Temple knowingly violated Richards Layton policies on confidentiality and stock trade notifications.

"The firm has cooperated fully with the federal government in its investigation, no attorneys or other employees of the firm were involved, and no harm to clients has occurred as a result of the alleged activity," the firm said in its statement.

Temple traded ahead of Google's acquisition of On2 Technologies and the Walt Disney Company's $4 billion bid for Marvel Entertainment in August 2009, Bloomberg reports, citing from the SEC's 48-page civil complaint.

Ballard Spahr litigation partner Elizabeth Moskow-Schnoll in Philadelphia is representing Temple. The SEC's market abuse unit in Philadelphia is prosecuting the case.

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