U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 25910 / December 14, 2023
Securities and Exchange Commission v. David Blaszczak, et al., Civil Action No. 17-cv-03919 (S.D.N.Y., filed May 24, 2017)
SEC Dismisses Charges in Trading Scheme Involving Confidential Government Information
On November 17, 2023, the SEC dismissed its charges against David Blaszczak, Christopher Worrall, and Theodore Huber. The dismissal resolves all remaining claims arising out of the SEC’s May 24, 2017 complaint, which alleged, among other things, that Blaszczak, Worrall, and Huber engaged in a scheme to trade on nonpublic information about government plans to cut Medicare reimbursement rates, which affected the stock prices of certain publicly traded medical providers or suppliers. A fourth defendant, Jordan Fogel, previously settled with the SEC.
The SEC’s investigation was conducted by Ann Rosenfield and Patrick McCluskey and supervised by Carolyn Welshhans and Joseph Sansone. The SEC’s litigation was conducted by Melissa Armstrong. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Southern District of New York, the Federal Bureau of Investigation, and the Department of Health and Human Services Office of Inspector General.
For additional information, see Litigation Release Number 23841.