According to the SEC’s complaint, Tobia allegedly breached his fiduciary duty as president and CIO of the public company by tipping Lee in the Summer of 2021 about his company’s plan to make an offer to acquire all of the outstanding shares of Spok Holdings Inc., after which Lee promptly placed trades to purchase Spok stock. When Tobia’s company later issued a press release announcing the offer, Spok’s stock price increased by approximately 26 percent. Within two days, Lee allegedly sold all of the Spok shares she had purchased, generating illicit profits of more than $262,000. In addition, while serving as a member of the board of the other public company, Tobia allegedly learned material nonpublic information about PFSWeb, Inc.’s sale of one of its business units known as LiveArea. Tobia allegedly tipped the information to Lee, who purchased 60,000 shares of PFSWeb and sold those shares once the LiveArea transaction was announced. As a result, Lee made more than $166,000 in profit.

“As we allege, Tobia repeatedly abused his position as a corporate officer by sharing material nonpublic information with his sister-in-law to enable her to place profitable trades,” said Tejal D. Shah, Associate Director of the SEC’s New York Regional Office. “The SEC is committed to holding accountable corporate insiders who abuse material nonpublic information for private gain – whether by trading themselves or by tipping others.”