The Securities and Exchange Commission today filed civil charges against KENNEDY. In its complaint it identifies the friend as Maziar Rezakhani, and names him as a defendant. Rezakhani, 28, is currently serving a five year prison term for defrauding a bank, Apple, Inc., and various shipping and insurance companies. The insider trading investigation grew out of the investigation into Rezakhani’s frauds. The SEC is seeking disgorgement of all profits from Rezakhani’s alleged illegal trading. KENNEDY agreed to a settlement with the SEC. Details of the SEC action are available here.
The case was investigated by the FBI. The case was prosecuted by Assistant United States Attorney Brian Werner.