Jason Satsky, a former investment banker at Bank of America, was charged by the Securities and Exchange Commission with civil fraud allegations related to insider training, the illegal use of non-public information to trade stocks.
The Securities Act of 1934, which Satsky allegedly violated, includes Section 10(b), the SEC’s principal regulation prohibiting the use of fraud, deception or manipulation to trade U.S. securities.
However, approximately 85% of insider training goes unreported today, with investigations being either prolonged or incomplete.
“Corporate insiders violate their ethical responsibilities to their own shareholders by profiting on information the shareholders don’t have. Corporate information belongs to the shareholders, and they should all get it at the same time,” said Richard Marston, a Finance professor at the University of Pennsylvania’s Wharton School of Business.
The SEC may collect evidence for a particular case through testimonials from whistleblowers or witnesses, surveillance cameras or even anonymous tips.
According to Reuters, Satsky shared confidential information about a possible high profile South Jersey Industries merger with his close friend Gavin Wolfe back in 2021. Together, they traded stocks using three front companies, including Evergreen Financial, Evergreen Capital and Empire Property.
Both Satsky and Wolfe joined Bank of America in 2012. Prior to that, Wolfe held the position of Senior Power and Renewable Energy Manager at Credit Suisse.
“Jason strongly denies the SEC’s allegations and is confident that the evidence will demonstrate that he acted properly and that he will be fully vindicated,” said Robert Anello, Satsky’s lawyer.
Anello further emphasized that Satsky did not issue private information to Wolfe surrounding the South Jersey Industries merger allegations.
“Jason did not provide Gavin Wolfe, or anyone else, with material non-public information regarding South Jersey Industries,” Anello said.
Wolfe’s lawyer Reed Brosky also made a statement that asserted his client’s innocence. Brosky said that Wolfe “categorically denies the allegations and will vigorously defend himself.”
Brosky even accused the SEC’s investigation of “ignoring” other legal testimonial documents that showed the legitimacy of Wolfe’s transactions.
According to The Banker, the SEC reported that Satsky’s employment was terminated by Bank of America in March 2025. Both Satsky and Wolfe could face civil penalties with Wolfe having to give up his gains recovered from the controversial stock holdings.
Although Bank of America is cleared from any legal punishments by the SEC, Yahoo Finance reports on the potential risk assessment from investors. An insider trading scandal might lower trust in the investment banking giant.
With the SEC’s charges filed in the Southern District of New York, the case remains in its earliest stages, as a federal judge is yet to schedule a trial date.
