Artis Capital Management Settles SEC Allegations Related to Insider Trading Case

Oct 13 2016 | 11:12pm ET

Artis Capital Management has settled accusations by the U.S. SEC that it failed to detect insider trading by an employee. 

As part of the settlement, Artis has agreed to disgorge profits of $5.2 million, plus $1.1 million in interest, and pay a penalty of $2.6 million. In addition, Michael Harden, a senior research analyst at Artis Capital, agreed to pay a $130,000 penalty and will be suspended from the securities industry for 12 months. 

Artis and Harden consented to the SEC's order without admitting or denying findings that they failed to maintain adequate policies, procedures and supervision to prevent insider trading at the firm, according to a statement by the SEC. The employee in question, Matthew Teeple, was sentenced in 2014 to five years in prison after pleading guilty to securities fraud. 

The case stems from the 2008 disclosure of non-public information to Teeple by Foundry Networks’ then-chief information officer, David Riley, including a plan by Brocade Communications’ to buy Foundry for $3 billion. 

Founded in 2001 and based in San Francisco, Artis is in the process of winding down its hedge funds. The company is affiliated with a venture arm well-known for co-investing in one of YouTube’s early financing rounds.

In Depth

Q&A: Portfolio Advisors' Brian Murphy On The Advantages of A Private Markets Platform

Jan 2 2018 | 11:05am ET

Most private markets firms reference their platforms as a source of competitive...


CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Steinbrugge: The Top Hedge Fund Industry Trends for 2018

Jan 2 2018 | 12:22pm ET

Each year, Don Steinbrugge’s Agecroft Partners compiles the insights gained...


FINalternatives Trending

From the current issue of