SEC: Former BankRI board member charged with insider trading

PROVIDENCE, R.I. (WPRI) — The U.S. Securities and Exchange Commission is charging four people, including a former member of the board of directors of Bancorp Rhode Island, Inc., with insider trading.

The SEC alleges Anthony Andrade tipped off three close business associates about the publicly-traded bank’s acquisition by Massachusetts-based Brookline Bancorp before it was made public.

After weeks of confidential negotiations, Brookline Bancorp publicly announced the acquisition of Bancorp Rhode Island in April 2011.

Bancorp Rhode Island’s stock price significantly increased after the announcement, according to the SEC. The company’s stock closed at $44 per share that day, an increase of $13.29 over the previous day’s closing price.

Andrade, of Rehoboth, is charged by the SEC with telling three friends about the pending acquisition prior to the announcement. Robert Kielbasa, of Portsmouth, Kenneth Rampino, of Seekonk, and Fred Goldwyn, of Wilmington, Delaware, profited more than $80,000 in total by trading on this information, the SEC alleges.

The complaint seeks to bar Andrade from serving as an officer or director of a public company.

The SEC said Goldwyn and Kielbasa agreed to settle the charges without admitting or denying the allegations. Kielbasa will forfeit $39,645 in trading profits plus prejudgement interest of $5,335 and a civil penalty of $39,645, totaling $84,625. Goldwyn will forfeit $23,565 in trading profits plus prejudgement interest of $3,171 and a civil penalty of $23,565, totaling $50,301.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s