STAMFORD, Conn. -- Norwalk resident Dennis W. Hamilton has waived his right to indictment and pleaded guilty Monday to one count of securities fraud, according to Deirdre M. Daly, United States Attorney for the District of Connecticut.
According to court documents and statements made in New Haven federal court, Hamilton was employed as vice president of tax at Harman International Industries (NYSE: HAR) in Stamford in 2009 when he began allowing Harman directors, members of its executive committee and certain other insiders to buy or sell Harman securities in the public market only during a declared trading window period.
In August 2013, he was included on Harman’s insider trading list, and was notified when the window in which he could engage in open market purchases of Harman securities was open, and that all trades must be cleared in advance with Harman’s general counsel, according to court documents.
On Sep. 27, 2013, Hamilton and other Harman employees were advised via email that the “window period” within which they may engage in open market purchases or sales of Harman securities had closed.
Hamilton, acting on the non-public information about Harman’s financial results he learned in his role as vice president, purchased 17,000 shares of Harman stock using his wife's name through a Charles Swab account on between Oct. 30 and Nov. 5, 2013, according to Daly. The shares rose $9 to $81.02. Hamilton made more than $130,000 on the shares he purchased, Daly said in a press release.
Hamilton was arrested on a criminal complaint on Feb. 5. He is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on June 10, at which time he faces a maximum term of imprisonment of 20 years and a fine of up to $5 million. He is released on bond pending sentencing.
In a parallel action, the Securities and Exchange Commission has filed related civil charges against Hamilton.
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