UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SEC ADMIN RELEASE 34-75484; IA RELEASE 40-4143 / JULY 17, 2015: THE SECURITIES AND EXCHANGE COMMISSION ("COMMISSION") DEEMS IT APPROPRIATE AND IN THE PUBLIC INTEREST THAT PUBLIC ADMINISTRATIVE PROCEEDINGS BE, AND HEREBY ARE, INSTITUTED AGAINST CHAD E. WIEGAND ("WIEGAND" OR "RESPONDENT"). ON THE BASIS OF THIS ORDER AND RESPONDENT'S OFFER, THE COMMISSION FINDS THAT ON JUNE 23, 2015, A JUDGMENT WAS ENTERED BY CONSENT AGAINST WIEGAND, PERMANENTLY ENJOINING HIM FROM FUTURE VIOLATIONS OF SECTION 10(B) OF THE EXCHANGE ACT AND RULE 10B-5 THEREUNDER, IN THE CIVIL ACTION NO. 3:15-CV-01276-MMA-DHB, IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF CALIFORNIA. ALSO, ON JUNE 9, 2015, WIEGAND PLED GUILTY TO ONE COUNT OF CONSPIRACY TO COMMIT SECURITIES FRAUD IN VIOLATION OF TITLE 18 UNITED STATES CODE, SECTION 371, BEFORE THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF CALIFORNIA, IN CRIM. INFORMATION NO. 3:15-CR-01462-DMS.

Order

Bar (Permanent)

SEE COMMENT

7/17/2015

CHAD WIEGAND AGREED TO A SETTLEMENT THAT IS SUBJECT TO COURT APPROVAL. DISGORGEMENT, PREJUDGMENT INTEREST, AND PENALTIES WILL BE DETERMINED AT A LATER DATE.

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SEC LITIGATION RELEASE 23279, JUNE 9, 2015: THE SEC TODAY CHARGED THREE MEN LIVING IN CALIFORNIA WITH INSIDER TRADING IN THE STOCK AND OPTIONS OF A BIOTECHNOLOGY COMPANY WHERE ONE OF THEM WORKED. THE SEC ALLEGES THAT CHAD E. WIEGAND WAS TIPPED MATERIAL NONPUBLIC INFORMATION BY HIS BROTHER-IN-LAW, WHO WAS SENIOR DIRECTOR OF INFORMATION TECHNOLOGY AT A COMPANY, IN ADVANCE OF MAJOR PUBLIC ANNOUNCEMENTS RELATED TO TWO PHARMACEUTICAL TRIALS, A LICENSING AGREEMENT FOR A CANCER DRUG, AND EVENTUALLY THE ACQUISITION OF THE COMPANY BY ANOTHER ENTITY. WIEGAND, A STOCKBROKER, PURCHASED THE COMPANY'S STOCK IN VARIOUS CUSTOMER ACCOUNTS BASED ON THE CONFIDENTIAL INFORMATION HE RECEIVED FROM HIS BROTHER-IN-LAW, AND HE TIPPED HIS FRIEND AND FELLOW STOCKBROKER SO THE FRIEND COULD SIMILARLY BUY STOCK ON BEHALF OF HIS CUSTOMERS. THE ALLEGED INSIDER TRADING RESULTED IN ILLEGAL PROFITS OF APPROXIMATELY $530,000. IN A PARALLEL ACTION, THE U.S. ATTORNEY'S OFFICE FOR THE SOUTHERN DISTRICT OF CALIFORNIA TODAY ANNOUNCED CRIMINAL CHARGES AGAINST WIEGAND. ACCORDING TO THE SEC'S COMPLAINT FILED IN FEDERAL COURT IN SAN DIEGO, THE INSIDER TRADING OCCURRED FROM APRIL 2009 TO APRIL 2012. THE COMPLAINT CHARGES WIEGAND WITH VIOLATING SECTION 10(B) OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 10B-5 THEREUNDER.

Judgment Rendered

Injunction

CHAD WIEGAND AGREED TO A SETTLEMENT THAT IS SUBJECT TO COURT APPROVAL. DISGORGEMENT, PREJUDGMENT INTEREST, AND PENALTIES WILL BE DETERMINED AT A LATER DATE. CHAD WIEGAND HAS AGREED TO BE BARRED FROM THE SECURITIES INDUSTRY.

Conspiracy to Commit Offenses Against the United States (Securities Fraud and Insider Trading)

Pled guilty

CHAD WIEGAND WAS TIPPED MATERIAL NON-PUBLIC INFORMATION BY HIS BROTHER-IN-LAW, WHO WAS A SENIOR DIRECTOR AT A BIOTECH COMPANY, IN ADVANCE OF PUBLIC ANNOUNCEMENTS RELATED TO TWO CLINICAL TRIALS, A LICENSING AGREEMENT FOR A DRUG IN DEVELOPMENT AND EVENTUALLY THE ACQUISITION OF THE COMPANY BY ANOTHER ENTITY. WIEGAND, A STOCKBROKER, PURCHASED THE STOCK FOR SEVERAL CLIENTS AND ALSO TIPPED HIS FRIEND, ALSO A STOCKBROKER, SO THAT HE COULD SIMILARLY PURCHASE THE STOCK FOR CLIENT ACCOUNTS. TRANSACTIONS OCCURRED BETWEEN 2009 AND 2012.

NPC

Discharged

REPRESENTATIVE EXERCISED TRADING DISCRETION IN CLIENTS ACCOUNT

$25,000.00

Tax

DURING FTY 2001 & 2002, I UNDER ESTIMATED MY TAX LIABILITY. IN 2003 (06/15/03), I FILED BOTH RETURNS SIMULTANEOUSLY AND INTERNAL REVENUE DETERMINED THAT I OWED APPROXIMATELY $40,000.00. I HAVE PAID THE BALANCE DOWN TO $14,760 CURRENTLY. ALL TAX FILINGS AND PAYMENTS ARE CURRENT FOR ALL OTHER TAX YEARS."