Former Ontrak CEO Terren Scott Peizer convicted of $12.5m insider trading based on Rule 10b5-1.

Former CEO of Nevada-based health care company Ontrak, Terren Scott Peizer, convicted of a $12.5m insider trading scheme. Peizer was found guilty in Los Angeles by a federal jury of one count of securities fraud and two counts of insider trading, in the first case prosecuted based on Rule 10b5-1, which allows insiders to create a predetermined plan to sell shares while setting limits on certain trading practices. Peizer violated these limits in 2021, using insider knowledge of Ontrak's largest customer ending its contract to avoid more than $12.5m in losses.

June 22, 2024
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