SEC charges two former Wall Street bankers over $18.5 million insider trading scheme

Two former Wall Street investment bankers were charged with fraud by the SEC on Friday following their stock trades in South Jersey Industries prior to the company’s February 24, 2022 takeover announcement.

According to the lawsuit, Mr. Satsky, aged 59, was one of the heads of an energy and utility banking unit at the New York bank, while working on South Jersey’s business and being a lead banker for that deal. Mr. Wolfe, his 55-year-old friend and former colleague, was alleged to have traded about 2.2 million shares, making a profit of $18.5 million when the stock rose about 40% on the news.

Wolfe bought 2.2 million shares between November and December

The purchases ran through the last two months of 2021 at a cost of at least $53 million, according to the complaint, filed as case 1:26-cv-07132 in the Southern District of New York. Infrastructure Investments Fund agreed to take South Jersey private at $36 a share in a deal valued at $8.1 billion.

The two men spoke about a possible acquisition on several occasions, the SEC says, including at a nationally televised college basketball game they attended with their wives.

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