FOOTBALL STAR BETRAYED TRUST! Sold Stock BEFORE Bad News!

SEC v. Jack Brewer — U.S. Securities and Exchange Commission Litigation Release No. 26322, dated June 10, 2025.

The SEC partially won a summary judgment against former registered representative Jack Brewer for insider trading. Brewer sold over $100,000 of COPsync stock before a company announcement, profiting approximately $35,000 more than he would have otherwise. The court found that Brewer breached his duty of confidentiality and that the information he possessed was material and non-public.

In Plain English

Imagine you're about to tell your friends some big news that will make something they own less valuable. Before you tell them, you sell your own share of that thing. Jack Brewer did something similar with a company's stock. He learned secret information about a stock offering that would likely lower the stock's price. Before this news became public, he sold his stock, making more money than if he had waited. A court agreed this was wrong and partially ruled against him.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

1. Obtain Confidential Information Jack Brewer, through his consulting and endorsement work for COPsync, Inc., obtained material, non-public information about the company's plans to conduct a stock offering.
2. Agree to Confidentiality and Restrictions Brewer's agreements with COPsync included a clause obligating him not to sell any COPsync shares before the company publicly announced the offering. Additionally, a consulting agreement required him to maintain confidentiality of proprietary information.
3. Sell Shares Before Announcement Despite these obligations, on January 4 and 5, 2017, Brewer sold his COPsync shares. This occurred before COPsync issued its press release announcing the stock offering.
4. Profit from Insider Trading As a result of selling his shares before the public announcement, Brewer profited by approximately $35,000 more than he would have if he had sold them after the stock offering was disclosed.

The Enforcement Action

On May 30, 2025, the U.S. District Court for the Southern District of New York granted the SEC partial summary judgment against former registered representative Jack Brewer for insider trading in the securities of COPsync, Inc. The SEC charged Brewer with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The court found that Brewer obtained material, non-public information about COPsync's stock offering plans and breached his duty of confidentiality by selling over $100,000 of COPsync stock before the company's announcement, profiting approximately $35,000.

Named in this action: Jack Brewer.

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