Ex-CEO of Nevada-based health care company Ontrak convicted of $12.5 million insider trading scheme
Associated PressLOS ANGELES — The former CEO and chairman of Ontrak, a publicly traded health care company based in Nevada, was found guilty Friday of a multimillion-dollar insider trading scheme. A federal jury in Los Angeles convicted Terren Scott Peizer, a resident of Puerto Rico and Santa Monica, California, of one count of securities fraud and two counts of insider trading. “This is the Justice Department’s first insider trading prosecution based exclusively on the use of a trading plan, but it will not be our last,” said Deputy Assistant Attorney General Nicole M. Argentieri, who heads the Justice Department’s Criminal Division. “We will not let corporate executives who trade on inside information hide behind trading plans they established in bad faith.” One of Peizer’s lawyers, David Willingham, said in an emailed statement that they will appeal, and that testimony at trial showed Peizer didn’t act in bad faith because he relied on the advice of his management team when he set up the trading plans.
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