Insider Trading Scheme Fueled by Cash-Filled Envelopes!

SEC v. Robert Yedid, Andrew Kaufman, and Mark Jacobs — U.S. Securities and Exchange Commission Litigation Release No. 26582, dated July 10, 2026.

The SEC charged Robert Yedid, Andrew Kaufman, and Mark Jacobs with insider trading. Yedid, an investor relations executive, allegedly provided material non-public information about pharmaceutical clients to Kaufman and Jacobs, who then traded on this information, generating over $500,000 in illegal profits. All three defendants pleaded guilty in a parallel criminal case and faced sentencing, including fines and forfeiture, with the SEC seeking disgorgement and prejudgment interest in its civil case.

In Plain English

Imagine someone working at a company that helps drug companies talk to investors. This person learns secret news about the company, like if a new drug works or if it's being bought. They tell this secret news to two friends. The friends then buy or sell stocks based on this secret news before everyone else knows. They make a lot of money, and the person who gave them the secret news gets cash too. The government found out and charged everyone involved.

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. Access to Confidential Information Robert Yedid, a managing director at a consulting firm, obtained material non-public information about the firm's clients. This information included sensitive details such as drug trial results, financial data, and pending mergers and acquisitions.
2. Sharing of Inside Information From at least 2019 through 2024, Yedid repeatedly shared this confidential client information with his friends, Andrew Kaufman and Mark Jacobs.
3. Trading on Non-Public Information Based on the material non-public information provided by Yedid, Kaufman and Jacobs engaged in insider trading. They bought or sold securities of numerous public companies before the information became public.
4. Generating Illegal Profits This insider trading activity allegedly resulted in more than $500,000 in combined illegal profits for Kaufman and Jacobs.
5. Illicit Proceeds and Cash Payments Kaufman allegedly shared his illicit trading profits with Yedid by handing him envelopes containing cash, compensating him for the inside information.

The Enforcement Action

The SEC filed a complaint on August 14, 2025, charging Robert Yedid, Andrew Kaufman, and Mark Jacobs with insider trading. On July 8, 2026, the SEC filed proposed final consent judgments against the defendants. The final judgments, subject to court approval, would order Yedid liable for disgorgement of $146,940.60 plus $20,879.31 in prejudgment interest, Kaufman liable for disgorgement of $342,861.40 plus $48,718.40 in prejudgment interest, and Jacobs liable for disgorgement of $36,138. These amounts are deemed satisfied by forfeiture orders in parallel criminal proceedings. The Court previously entered bifurcated judgments permanently enjoining them from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Yedid is also barred from associating with a broker or dealer and from serving as an officer or director of a public company.

Named in this action: Robert Yedid, Andrew Kaufman, Mark Jacobs.

Original SEC litigation release ↗ · Browse all cases