Executives Sentenced to Prison for Insider Trading Schemes
Former Ontrak CEO Terren Scott Peizer was sentenced to 42 months in prison and fined $17.9 million for the first-ever criminal conviction solely based on the misuse of Rule 10b5-1 trading plans, which are commonly used by executives. The case involved Peizer selling stock ahead of negative news that caused a significant stock drop, though his lawyer claims he disclosed his plans and did not commit insider trading.