FRIENDS BETRAYED TRUST FOR $500K CASH ENVELOPES!

U.S. Securities and Exchange Commission Litigation Release No. 26376, dated August 18, 2025.

The SEC charged Robert Yedid, a former investor relations executive, and his two friends, Andrew Kaufman and Mark Jacobs, with insider trading. Yedid allegedly leaked material nonpublic information about his firm's clients to Kaufman and Jacobs, who then traded on this information, making over $500,000 in illegal profits. Kaufman shared his illicit gains with Yedid.

In Plain English

Imagine your friend works at a company that helps other companies talk to investors. This friend learns secret news about those companies, like if a new drug works or if they plan to buy another company. Instead of keeping the secret, your friend tells you and another friend. You and your other friend then buy or sell stocks based on this secret news before everyone else knows. You make a lot of money, and you give some of the money back to your friend who gave you the secret tip.

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. Information Source Robert Yedid, a Managing Director at a consulting firm, gained access to confidential information about the firm's pharmaceutical and biotech clients. This information included sensitive details such as drug trial results, financial data, and pending mergers and acquisitions.
2. Breach of Trust Yedid was privy to this material nonpublic information due to his role in assisting clients with investor communications. He was aware of his obligation to protect this information, having completed insider trading training and being subject to strict confidentiality agreements.
3. Tipping Friends From at least 2019 through 2024, Yedid repeatedly shared this confidential information with his long-time friends, Andrew Kaufman and Mark Jacobs.
4. Lucrative Trading Kaufman and Jacobs then used this material nonpublic information to engage in profitable insider trading. They traded in the securities of at least six public companies based on Yedid's tips.
5. Specific Trades The trades involved purchasing and selling shares and derivatives based on nonpublic news concerning drug trial results, regulatory updates, earnings, and M&A activities.
6. Significant Profits Kaufman and Jacobs collectively netted more than $480,000 and $36,000, respectively, from these illicit trades.
7. Profit Sharing Kaufman shared his illegal proceeds with Yedid by giving him envelopes of cash, effectively kicking back half of his net profits.
8. Violations Alleged The actions of Yedid, Kaufman, and Jacobs constituted violations of the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.

The Enforcement Action

On August 14, 2025, the SEC charged Robert Alan Yedid, Andrew Kaufman, and Mark Jacobs with insider trading. The complaint alleged that Yedid provided material nonpublic information about six public companies to Kaufman and Jacobs from 2019 to 2024, resulting in over $500,000 in illegal profits. Kaufman shared his illicit proceeds with Yedid. All three defendants consented to the entry of an order permanently enjoining them from violating the charged provisions. The court will determine disgorgement, prejudgment interest, and civil penalties. Yedid also consented to a conduct-based injunction barring him from associating with a broker or dealer and from serving as an officer or director of a public company. The SEC's investigation was conducted by Jason Anthony, Nancy C. Iheanacho, and Margaret Vizzi, supervised by Paul H. Pashkoff and Pei Y. Chung. The litigation is led by Daniel Maher and supervised by David A. Nasse. The SEC received assistance from FINRA, the FBI, and the U.S. Attorney's Office for the Southern District of New York.

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