SEC v. Benjamin Taylor, Darina Windsor — U.S. Securities and Exchange Commission Litigation Release No. 26509, dated March 27, 2026.
Two former investment bankers, Benjamin Taylor and Darina Windsor, participated in an international insider trading scheme while employed in London. They misappropriated material nonpublic information about corporate transactions from their firms and tipped it through an intermediary to others who traded securities, sharing in the illicit profits. The SEC obtained final consent judgments against them, permanently enjoining them from future violations and ordering disgorgement and civil penalties.
In Plain English
Imagine two people working at big companies who learn secret information about upcoming deals, like one company buying another. Instead of keeping it secret, they told a friend, who then told other people. These other people used the secret information to buy and sell stocks before the news became public, making a lot of money. The two friends got a cut of the profits. Now, the government has stepped in and stopped them from doing this again, and they have to pay back the money they made illegally.
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
- Accessing Secret Deal Information Benjamin Taylor and Darina Windsor, working as investment bankers in London, had access to confidential information about upcoming corporate transactions, such as mergers and acquisitions, from their respective firms. This information was highly sensitive and not yet public.
- Misappropriating Confidential Data Despite their employers' strict policies requiring information confidentiality, Taylor and Windsor misappropriated this material nonpublic information. They did this between at least December 2012 and August 2015.
- Tipping Through an Intermediary Taylor and Windsor did not trade directly on the information. Instead, they tipped it through an intermediary to other individuals, including a 'Trader A' based in Switzerland, George Nikas, and Joseph Abdul Noor El-Khouri.
- Sharing Profits In exchange for providing these insider tips, Taylor and Windsor expected and received cash and other benefits, directly or indirectly, from the traders who profited from the information.
- Profitable Trading by Others The individuals who received the tips, such as Trader A, Nikas, and El-Khouri, used the material nonpublic information to make profitable trades in the securities of at least a dozen different U.S. companies before the deals were announced.
- Generating Illicit Gains Collectively, these traders realized millions of dollars in illicit gains from trading on the advance knowledge of impending corporate acquisitions and other deals.
- Further Tipping Chains Trader A would sometimes further tip the information to others, like Nikas, in exchange for a share of Nikas's trading profits. Taylor also tipped El-Khouri with information obtained from Windsor.
- Violation of Securities Laws By engaging in this conduct, Taylor and Windsor violated Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder, which prohibit insider trading and fraud in connection with tender offers.
The Enforcement Action
On February 17, 2026, the U.S. District Court for the Southern District of New York entered final consent judgments as to Benjamin Taylor and Darina Windsor. The judgments permanently enjoin Taylor and Windsor from violating Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and Rule 14e-3 thereunder. The judgments order Taylor to pay disgorgement of $500,000 and Windsor to pay disgorgement of $50,000 and a civil penalty of $50,000.
Named in this action: Benjamin Taylor, Darina Windsor.