UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SEC Admin Release 34-87245; IA Release 5401, October 8, 2019: The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against Michael Siva. On September 23, 2019, a judgment was entered by consent against Siva, permanently enjoining him from future violations of Sections 10(b) and 14(e) of the Exchange Act and Rules 10b-5 and 14e-3 thereunder, in the civil action entitled United States Securities and Exchange Commission v. Daniel Rivas, et al., 17-cv-06192, in the United States District Court for the Southern District of New York. On October 8, 2018, Siva pleaded guilty to Conspiracy to Commit Securities Fraud and Tender Offer Fraud in violation of 18 U.S.C. §371 before the United States District Court for the Southern District of New York, in United States v. Michael Siva et al., 17-cr-503.

Order

Bar (Permanent)

broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or NRSRO

Indefinite

10/8/2019

Participating in any offering of a penny stock

Indefinite

10/8/2019

Penny Stock Bar

Claimant alleged, inter alia, Unauthorized Trading with respect to investments - 2014 to Sep 2017

$1,200.00

Claimant alleged, inter alia, Unauthorized Trading with respect to investments - 2015 to July 2017

$12,500.00

$8,700.00

Claimant alleged, inter alia, Excessive Trading with respect to investments - 2014 to Sept 2017

$20,000.00

$100.00

Claimants' allege unauthorized trading, inter alia, 2014-09/2017

Morgan Stanley

Discharged

THE U.S. DEPARTMENT OF JUSTICE AND SEC CHARGED THE INDIVIDUAL WITH ALLEGATIONS CONCERNING SECURITIES FRAUD, INCLUDING ALLEGATIONS OF INSIDER TRADING DURING THE PERIOD JANUARY 2015 THROUGH EARLY 2017.

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

The United States Securities and Exchange Commission ("the Commission"), for its complaint against Michael Siva ("Siva"), an IT employee of a large multinational bank, and five others (collectively, "Defendants"), alleges that between October 2014 and April 2017, Defendants collectively profited by over $5 million by tipping and trading on inside information about dozens of impending corporate mergers, acquisitions, and tender offers. The IT employee of a large multinational bank ("the Bank") that provides investment banking services for business combinations like mergers, acquisitions, and tender offers stood at the center of the illegal scheme. In 2014, the IT employee joined a team of IT employees responsible for maintaining a computer system the Bank used to track its investment banking deals. The IT employee had access to highly-confidential information about hundreds of potential business combinations that had not yet been announced to the public. For more than two years, the IT employee misappropriated material nonpublic information about dozens of impending deals by repeatedly passing the information to four defendants (collectively, the "Direct Tippees") through three different tipping chains. The Direct Tippees traded on the information and passed the IT employee's tips to others, including defendants Siva and another individual. Siva and the other individual traded on the tips and tipped at least three other traders. In total, at least ten individuals traded on tips, and one or more of these traders made profits on market-moving news about thirty actual or contemplated corporate deals. By engaging in the conduct described, Defendants violated, and unless restrained and enjoined will continue to violate, Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 ("Exchange Act") and Rules 10b-5 and 14e-3 thereunder.

Judgment Rendered

Disgorgement

$35,000.00

Injunction

Undertakings

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

ALLEGATIONS CONCERNING VIOLATIONS OF SECTIONS 10(B) AND 14(E) OF SECURITIES EXCHANGE ACT OF 1934 AND RULES 10B-5 AND 14E-3 THEREUNDER.

ATTEMPT AND CONSPIRACY TO COMMIT WIRE FRAUD

Dismissed

FRAUD IN CONNECTION WITH TENDER OFFER

Dismissed

CONSPIRACY TO COMMIT SECURITIES FRAUD AND TENDER OFFER FRAUD

Pled guilty

SECURITIES FRAUD

Dismissed