A Norwalk man will pay $1.4 million in a judgment secured by the Securities and Exchange Commission, after pleading guilty to profiting from inside information at Stamford-based Harman International Industries.
As part of a 2016 guilty plea in a parallel investigation by the U.S. Attorney’s Office for the District of Connecticut, Dennis W. Hamilton received an eight-month prison sentence.
Hamilton admitted to trading Harman shares based on internal financial documents he had access to as a tax accountant with the company, on multiple occasions between 2013 and 2015. Harman fired him in February 2016, on the same day Hamilton was arrested for insider trading.
Harman sells audio systems and vehicle “infotainment” consoles, with the company acquired in March 2017 for $8 billion.
The SEC is crediting $130,000 Hamilton has already paid as part of his criminal plea toward a civil penalty of nearly $600,000, with Hamilton also ordered to back more than $800,000 in trading profits and interest on that money.
Alex.Soule@scni.com; 203-842-2545; @casoulman