The Securities and Exchange Commission charged a former midlevel manager of Massachusetts-based The TJX Cos. Inc. with insider trading.
James S. Hannon, who was the northeast regional vice president for TJ Maxx from 2011 to 2014, purchased TJX stock in advance of press releases that had positive financial information, on five occasions between 2012 and 2013. He then sold the stock shortly after the press releases caused the stock valuation to rise.
Hannon made $26,679 in total profits from the trading. TJX prohibits employees from trading in its stock when they have material nonpublic information. Hannon had daily access to confidential information about the company’s sales data.
The SEC settled with Hannon, requiring him to pay $26,679 with pre-judgment interest of $3,008 and a civil penalty disgorgement of $26,679. The settlement is subject to court approval.
TJX stock has risen 13 percent over the past year and was lately trading at $76.86. Over the past five years, the stock has risen 189 percent.