Director's Trading Frenzy: $338K Busted on Secret Earnings Data!

SEC v. Jesse R. Mitchell — U.S. Securities and Exchange Commission Litigation Release No. 26614, dated August 21, 2026.

The SEC charged Jesse R. Mitchell, former Senior Director of Financial Planning at The Trade Desk, Inc., with insider trading. Mitchell allegedly used material nonpublic information about the company's upcoming earnings releases to illegally trade in TTD stock and options, profiting over $338,000.

In Plain English

Imagine you work at a company and get to see the company's secret sales numbers before anyone else. You're not supposed to tell anyone or use them to buy or sell company stock. But Jesse Mitchell did just that. He used secret information about his company's good and bad sales reports to buy stock before good news came out and sell options before bad news came out, making a lot of money 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

1. Access to Secret Information As Senior Director of Financial Planning and Analysis at The Trade Desk, Inc. (TTD), Jesse R. Mitchell received preliminary quarterly earnings results before they were publicly released, starting around July 2024.
2. First Trade: Profiting from Positive News In July 2024, Mitchell learned TTD's Q2 2024 earnings would exceed analyst estimates. He then purchased 3,850 shares of TTD stock between July 24 and August 7, 2024.
3. Positive Earnings Announcement On August 8, 2024, after market close, TTD announced its positive Q2 2024 results. The next day, TTD's share price increased by over 12%.
4. Selling for Profit (Q2 2024) By August 9, 2024, Mitchell sold all his TTD shares, realizing nearly $20,000 in illicit profits from his advance knowledge.
5. Second Instance: Advance Knowledge of Revenue Miss Around January 20, 2025, Mitchell received preliminary Q4 2024 results, indicating TTD would miss its revenue guidance for the first time in its history.
6. Trading Put Options Between February 7 and February 12, 2025, Mitchell purchased 200 out-of-the-money TTD put options for approximately $15,000, betting the stock price would fall.
7. Negative Earnings Announcement On February 12, 2025, after market close, TTD announced its Q4 2024 results, confirming the revenue guidance miss. The stock price dropped over 30% by the next morning.
8. Selling Options for Profit (Q4 2024) On February 13, 2025, Mitchell sold his put options, profiting over $318,000 from this trade.
9. Violation of Company Policies Mitchell's trading occurred during prohibited blackout periods and, in the second instance, involved trading options, which was explicitly banned by TTD.

The Enforcement Action

The SEC charged Jesse R. Mitchell with insider trading in violation of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The complaint seeks permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, civil penalties, and an officer-and-director bar. In a parallel action, the U.S. Attorney’s Office for the Southern District of New York announced an indictment charging Mitchell with securities fraud.

Named in this action: Jesse R. Mitchell.

Original SEC litigation release ↗ · Browse all cases