Ex-SEC accountant pleads guilty to trading fraud

David Humphrey fined following misrepresentation of personal derivatives trading activity.

A former accountant at the Securities and Exchange Commission (SEC) has been fined $100,000 and banned from the industry for securities trading fraud. 

David Humphrey - who worked at the SEC between 1998 and 2014 - was found to have concealed his personal trading of options and other securities.

When questioned by the SEC’s office of inspector general about the allegations, Humphrey then ‘misrepresented’ his activities.

The SEC said Humphrey “violated the rules by engaging in transactions involving derivatives, failing to obtain pre-clearance before trading non-prohibited securities, and failing to hold securities for the required period.”

He pleaded guilty and has paid over $100,000 to settle the charges.  The regulator has also imposed a permanent ban from appearing and practicing before the SEC.

The US financial watchdog reiterated employees are subject to rigorous rules regarding securities transactions to “guard against even the appearance of using public office for private gain”.

The settlement is subject to court approval.