The former CEO was sentenced to prison deals in a teacher case.

As detailed in the various court documents, PEIZER was increasingly sending feverish text messages to close and UNTRAK executives about the potential loss of a main customer in the months before setting a trading plan to sell ontrak shares.

Beizer said that PEIZER avoids $ 12.5 million by selling his shares before certain information was announced and the share price decreased by more than 40 %.

The Miami -based company, which was established by PEIZER in 2003, had previously lost another large agent, which was determined in the court documents that AetnaWho spent $ 265 million of PEIZER wealth after the price of the on the news fell on the news.

In March 2021 press release With the announcement of Aetna termination, Peizer said that the company still has “important background winds” and an ontrak deal with CIGNA, saying that it will lead the growth of 2021, according to the Securities and Stock Exchange Committee Civil complaint About Bezer Trading.

PEIZER stepped down the role of the CEO in April 2021, but he remained an executive president.

After losing Aetna, it seems that Peizer was desperate in an attempt to keep some aspects of the deal with Cigna, and an executive president, who remained in regular contact with the CEO of Ontrak by Text, as the court records appear.

Behind the scenes, PEIZER described himself in a text message as “installed” on the potential loss CignaThe authorities said that the survival of Eracket is largely dependent on maintaining the relationship.

David K. Wellingham, Bazer’s lawyer and partner at the Kings & Spaling, luck The case was “a real abortion of justice from the beginning.” He said that PEIZER “completely revealed” his commercial plans to his company and obtained approval from the administration and compliance employee in advance.

“This procedure and trade plans were supposed to protect this Mr. Bezer,” Wellingham said. “From our point of view, this issue was a tremendous violation, a waste of taxpayers, and a dangerous precedent is greatly distorted the meaning of non -public materials throughout the business world.”

Wellingham said the case would be resumed. Either way, it can have a chilling effect for which the bodies Thousands of executives Use 10B5-1 base plans to invest in their stock compensation, which often constitutes the largest part of their salaries.

Meanwhile, the authorities chanted the prosecution.

American lawyer Bill Essly for the central region of California at the Ministry of Justice said: “It is not necessary to be allowed to put their thumb on the stock market standards,” said American lawyer Bill Essaylli for the California Central Region at the Ministry of Justice. statement. “Individuals who spoil the safety of our markets can face time in prison for their crimes.”

Train the text

In late March 2021, PEIZER was discovered via a text message that there is a lot of anxiety everywhere about Cigna. Email that copies Peizer also put the scope of problems; Cigna was concerned about budget excesses, cost saving, and cost account accounts were interrupted.

Court documents show Pequer’s concern about the situation and is running in its text messages. He wrote to an interracial advisor, “We just need to save (Cigna) and we are on our way.” A few weeks later, PEIZER sent a text message to the CEO of Ontrak, “Please just save (CIGNA) … we will return” Ontrak “.

By the end of April, the advisor Paser told that the situation with CIGNA was “frightening” like Aetna mode. “What a nightmare,” Beser wrote on May 1, 2021.

Three days later, Peizer began searching for ways to sell Ontrak Holdings, as court documents appear.

Rule 10b5-1 plans It is supposed to be presented A safe port For executives who want this Selling stocks In the securities of the companies circulating for the public where they work – who also receive their salaries. SEC modified the base in 2022 to make the formal nature of the cooling period, adding a condition that everyone who enters the base plan 10B5-1 should act in good faith regarding the plan.

According to the authorities, PEIZER is connected with a broker to prepare a 10B5-1 trading plan on May 4, 2021, just days after the text “What A Nightmare”. The broker told PEIZER that he would need to wait 30 days for the cooling period between the time created by the plan and before he could sell the shares. Peizer has passed at work with the broker.

Instead, contact another broker and asked if their company had a great period. The second broker did not ask for one, although an employee of the company sent an e -mail to PEIZER on May 10 as “the best practices in the industry” to include 30 days waiting between implementing the trading plan and starting any deals. Without the cooling period, the beginning of rapid trading can create an undesirable appearance and wonder if Peizer has non -general information, via email.

Peizer did not take advice and created his business plan on the same day. The next work day started. The authorities claimed that PEIZER obtained the 10B5-1 plan that was approved by the false ratification of the financial manager at Ontrak that the plan was not the result of access to non-public material information, although Peizer was aware of the CIGNA’s CIGNA deal.

On May 18, just eight days after PEIZER was founded his business plan, Cigna officially informed Ontrak that he would end the contract by the end of the year.

Ontrak CEO PEIZER, “(Cigna) intends to end the relationship at the end of the year 12-31-21 … They are really firm with me. A decision has been taken.”

Meanwhile, this information was not public.

PEZER has sold stocks throughout the summer, according to the plan it created in May, where the executive officials of Ontrak worked in an attempt to revive a deal with Cigna. Between May and late July, the authorities said that PEIZER has made $ 18.9 million to sell shares.

On July 20, 2021, PEIZER wrote a text message to the Ontrak advisor to ask if there was any word in a deal with Cigna.

The consultant wrote that there was no news and that he needed to write a press release of Antrack. (W) Did you never end? ” Consultant Books.

“No, but I hope it will be anxiety,” Paser wrote again. Consultant Books, “I also – levels of tension outside the plans in (Ontrak).”

On August 13, 2021, Bezer called the first vice president at Ontrak, who was leading the contract negotiations, the authorities said. Tell SVP Peizer that CIGNA is likely to end its relationship with Ontrak.

On the same day, about an hour after the call, the authorities said that PEIZER had developed a 10B5-1 trading plan, claiming that he was again incorrectly approved by the financial manager that the plan was not in response to non-general material information. The August plan also did not have a cooling period, and PEIZER began selling Ontrak shares on the next trading day, increasing the number of shares that are sold daily from 11,000 to 15,000. Between August 16 to August 18, PEIZER achieved about 900,000 dollars for sale.

The next day was not the first general disclosure of Cigna came out.

On August 19, 2021, Ontrak revealed in a 8-K file that a deal with the insurance company has ended. The price of the sharecrak decreased by 44 %, as the court records appear.

PEIZER avoid $ 12.5 million because he created the two trading plans, the authorities claimed. The case is part of an initiative that relies on data by the Criminal Fraud Department at the Ministry of Justice to determine the executive violations of 10B5-1 trading plans.

In addition to the prison sentence, PEIZER was fined 5.25 million dollars, and was required to confiscate more than $ 12.7 million from bad gains.

Aetna refused to comment. CIGNA did not immediately respond to a request for comment.