SEC Obtains Final Judgment Against Kevan Sadigh for Insider Trading

SEC Litigation Releases

Filed March 20th, 2026

Detected March 24th, 2026

Summary

The SEC announced that a final consent judgment has been entered against Kevan Sadigh for insider trading. The judgment permanently enjoins Sadigh from violating securities laws and orders him to pay $108,120 in disgorgement, which is satisfied by a parallel criminal forfeiture order.

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What changed

The U.S. Securities and Exchange Commission (SEC) has obtained a final consent judgment against Kevan Sadigh, an entrepreneur previously charged with insider trading. The judgment, entered by the U.S. District Court for the Central District of California, permanently enjoins Sadigh from violating Section 10(b) and Rule 10b-5, as well as Section 14(e) and Rule 14e-3 of the Securities Exchange Act of 1934. Sadigh was accused of trading on material nonpublic information concerning two corporate acquisitions, which he received indirectly from a source at J.P. Morgan Securities LLC.

This action concludes the SEC's civil enforcement case against Sadigh, stemming from a complaint filed in August 2015. The final judgment orders Sadigh to disgorge $108,120 in profits, a sum deemed satisfied by a forfeiture order in a related criminal case. Compliance officers should note that this case reinforces the SEC's commitment to prosecuting insider trading and highlights the severe consequences, including permanent injunctions and financial penalties, associated with such violations.

What to do next

Review internal policies and procedures related to insider trading prevention.
Ensure all employees understand the prohibitions against trading on material nonpublic information.
Reinforce training on securities laws and ethical conduct.

Penalties

Disgorgement of $108,120 (satisfied by criminal forfeiture)

Source document (simplified)

Kevan Sadigh

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26504 / March 23, 2026

Securities and Exchange Commission v. Kevan Sadigh, No. 2:15-cv-06460 (C.D. Cal. filed Aug. 25, 2015)

SEC Obtains Final Consent Judgment as to Former Resident of Los Angeles Charged with Insider Trading

On March 20, 2026, the United States District Court for the Central District of California entered a final consent judgment as to Kevan Sadigh, an entrepreneur and former resident of Los Angeles, in the SEC’s civil enforcement action against him for insider trading.

According to the SEC’s complaint, filed on August 25, 2015, Sadigh was tipped by a friend and work colleague, who in turn had been tipped by his close friend, an analyst in J.P. Morgan Securities LLC’s San Francisco office, concerning material nonpublic information about two corporate acquisitions in which JPMS played an advisory role. The complaint alleges that Sadigh and his colleague, acting largely in parallel, reaped large profits by making unlawful securities trades on the basis of that material nonpublic information.

The final consent judgment permanently enjoins Sadigh from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder by committing or engaging in specified actions or activities relevant to such violations, and Section 14(e) of the Exchange Act and Rule 14e-3 thereunder. The final judgment also orders Sadigh liable for disgorgement in the amount of $108,120, which is deemed satisfied by the entry of an order of forfeiture in the parallel criminal case, United States v. Sadigh, No. 2:15-cr-00465-TJH (C.D. Cal.).

The SEC’s litigation is being led by David S. Mendel and James E. Smith, and supervised by Christopher Bruckmann, Paul E. Kim, and Joseph Sansone.