Former Harman International executive pleads guilty to insider trading

On Monday, a former executive of Harman International Industries has pleaded guilty to insider trading in the company's stock.

According to US Attorney Deirdre M. Daly, Dennis W. Hamilton, 45, pleaded guilty to one count of securities fraud related to a $130,000 insider trading case from 2013. Reuters reported that the former vice president and executive of the audio-visual equipment company face up to 20 years of jail time. However, his plea agreement states that he could get one to two years under recommended federal guidelines.

Dennis Hamilton also agreed not to challenge the fine which amounts to $131,958, representing his illegal earnings. Hamilton is free on bond, and sources say that his fine could reach up to $5 million. Brian Spears, Hamilton's attorney, made no comment regarding the matter. 

Stamford-based Harman International Industries Inc. allowed its directors to purchase or sell Harman securities in the public market during a declared window, as reported by News Day. In October 2013, Hamilton received a nonpublic information about the financial results of Harman and then purchased Harman Shares which allegedly happened outside the declared trading window. Hamilton then gained more than 130,000.  Shares of Harman rose 12.5 percent on October 2013 after the company made its results open to the public.

Dennis Hamilton was apprehended in February 2016 and is scheduled to be sentenced on June 10, 2016, by US District Judge Alvin W. Thompson, reports The Patch.  The Federal Bureau of Investigation, with the help of Harman International, conducted the criminal investigation. The case of Hamilton is being prosecuted by Assistant US Attorney Heather Cherry. The prosecutor said Hamilton illegally profited on 17,000 Harman shares he brought through a Charles Schwab account, which belongs to him and his wife, a day before the company released quarterly results.

In a separate but connected case against Dennis Hamilton, the Securities and Exchange Commission also filed civil charges against him.

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harman international, vice president, Executive, pleads guilty, Insider Trading, audio visual company, harman shares, us insider trading, dennis hamilton

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