Ex-CEO of Nevada-based health care company Ontrak convicted of $12.5 million insider trading scheme

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LOS ANGELES (AP) — The former CEO and chairman of Ontrak, a publicly traded health care company based in Nevada, was found guilty Friday of a

LOS ANGELES — The former CEO and chairman of Ontrak, a publicly traded health care company based in Nevada, was found guilty Friday of a multimillion-dollar insider trading scheme.

In a statement announcing the conviction, the Justice Department described it as the first case it has prosecuted exclusively based on what is known as Rule 10b5-1, which allows company insiders to create a predetermined plan to sell shares while also setting limits on certain trading practices. One of Peizer’s lawyers, David Willingham, said in an emailed statement that they will appeal, and that testimony at trial showed Peizer didn’t act in bad faith because he relied on the advice of his management team when he set up the trading plans.

 

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Ex-CEO of Nevada-based health care company Ontrak convicted of $12.5 million insider trading schemeThe former CEO of a publicly traded health care company based in Nevada has been found guilty of a multimillion-dollar insider trading scheme. A federal jury in Los Angeles convicted Terren Scott Peizer on Friday.
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