LOVER SPILLS SECRETS! Insider Trading Fueled by Romance!

SEC v. Benjamin Tesfaye — U.S. Securities and Exchange Commission Litigation Release No. 26609, dated August 11, 2026.

The SEC charged Benjamin Tesfaye with insider trading for illegally trading Calliditas Therapeutics AB securities based on material, nonpublic information about an upcoming acquisition. Tesfaye learned this information from a romantic partner who worked for the acquiring company's subsidiary. He made approximately $18,668 in illicit profits by trading Calliditas securities and options before the acquisition was publicly announced. Tesfaye settled the charges, agreeing to pay disgorgement, prejudgment interest, and a civil penalty.

In Plain English

Imagine someone learned a secret about a company before anyone else. They used that secret to buy stocks in that company, hoping the price would go up when the secret became public. This is like knowing a store will have a big sale tomorrow and buying all the popular items today to resell them at a higher price. Benjamin Tesfaye did this with Calliditas Therapeutics stock before it was announced that Asahi Kasei would buy it. He made money from this secret information, and the SEC charged him for it.

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 Benjamin Tesfaye's then-romantic partner worked at a subsidiary of Asahi Kasei Corp. This partner was involved in assessing Calliditas Therapeutics AB's compliance program in connection with Asahi Kasei's potential acquisition of Calliditas.
2. Misappropriation of Information Tesfaye's partner, through their role, had access to material, nonpublic information regarding the impending tender offer by Asahi Kasei to acquire Calliditas. Tesfaye allegedly misappropriated this information from his partner.
3. Pre-Announcement Trading On May 23, 2024, two trading days before the public announcement, Tesfaye purchased Calliditas securities. This included American Depository Receipts (ADRs) and out-of-the-money call options.
4. Trading Accounts Tesfaye executed these trades in his personal brokerage account and also in a family member's account over which he exercised control.
5. Public Announcement On May 28, 2024, Asahi Kasei Corp. publicly announced its tender offer to acquire Calliditas Therapeutics AB.
6. Stock Price Increase Following the announcement of the tender offer, the price of Calliditas's shares increased significantly, by approximately 70%.
7. Liquidation and Profit Tesfaye then liquidated the Calliditas securities held in both his and his family member's accounts. This generated illicit profits totaling $18,668.

The Enforcement Action

On August 11, 2026, the SEC filed a settled action against Benjamin Tesfaye, charging him with insider trading. Tesfaye allegedly misappropriated material, nonpublic information about Asahi Kasei's tender offer for Calliditas Therapeutics AB from his then-romantic partner. Based on this information, Tesfaye purchased Calliditas securities and options, generating $18,668 in illicit profits. Without admitting or denying the allegations, Tesfaye consented to a final judgment permanently enjoining him from violating securities laws, ordering him to pay $18,668 in disgorgement, $2,168 in prejudgment interest, and a $18,668 civil penalty.

Named in this action: Benjamin Tesfaye.

Original SEC litigation release ↗ · Browse all cases