Banker Pals Nab $18.5 Million in Secret Trade Scheme!

SEC v. Gavin Wolfe; Jason Satsky, Defendants; and Evergreen Capital L.P., Evergreen Financial LLC, Empire Property Management LLC, GAW Holdings, LLC, SA 1055 LLC, SA 1057 LLC, SA 1082 LLC, and SA 1083 LLC, Relief Defendants — U.S. Securities and Exchange Commission Litigation Release No. 26617, dated August 21, 2026.

The SEC charged two former investment bankers, Gavin Wolfe and Jason Satsky, with insider trading. Satsky, who advised on the sale of South Jersey Industries, allegedly tipped Wolfe with material nonpublic information. Wolfe then traded on this information, making approximately $18.5 million, and also tipped others who profited an additional $515,000.

In Plain English

Imagine your friend works at a company that helps sell other companies. Your friend learns secretly that a big company is going to buy a smaller company called South Jersey Industries. Your friend tells you this secret. You then buy a lot of South Jersey stock right before everyone else finds out, making a lot of money when the stock price goes up. This is illegal because you used secret information that others didn't have.

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. Investment Banker Learns of Acquisition Jason Satsky, Co-Head of an energy and utility investment banking group, was the lead banker advising South Jersey Industries on its potential sale. He possessed material nonpublic information about the acquisition from at least September 29, 2021, when South Jersey's CEO hired his firm.
2. Tip is Passed Satsky, who had a close personal and professional relationship with Gavin Wolfe, allegedly communicated this confidential acquisition information to Wolfe. This occurred during multiple communications, including on the evening of November 9, 2021, while they attended a basketball game together.
3. Wolfe Plans Trades Within minutes of leaving the basketball game on November 9, 2021, Wolfe created a calendar entry for 'SJi and njr' for the next morning. This indicated his intent to trade in South Jersey Industries stock.
4. Funds Transferred for Trading On November 10, 2021, Wolfe transferred nearly $2.2 million to a trading account and instructed his investment manager to start buying shares of South Jersey Industries.
5. Massive Stock Accumulation Starting on November 11, 2021, and continuing through December 1, 2021, Wolfe purchased over 2.2 million shares of South Jersey stock. This was his first-ever investment in the company, costing at least $53 million, spread across eight entities he controlled.
6. Pre-Trade Financial Standing Prior to this period, Wolfe had never invested such a large sum in a single stock. His eight largest stock purchases in the preceding three and a half years ranged from approximately $2.4 million to $16.6 million.
7. Acquisition Announcement On February 24, 2022, South Jersey Industries announced its agreement to be acquired at $36 per share. This news caused the stock price to rise by approximately 40% that day.
8. Wolfe Realizes Profits Following the announcement, Wolfe's stock holdings generated approximately $18.5 million in illegal profits, representing a net return of about 36% on his investment.
9. Tipping Others Wolfe also allegedly tipped material nonpublic information to three friends and business colleagues. They subsequently purchased South Jersey stock and collectively made approximately $515,000 in unrealized trading profits.
10. Attempted Concealment When Investment Bank A conducted an internal inquiry prompted by a financial regulator, Satsky described his relationship with Wolfe only as 'client and former power/utilities banker, periodic ordinary course coverage,' omitting their close friendship and frequent contacts.

The Enforcement Action

The SEC filed fraud charges against former investment bankers Gavin Wolfe and Jason Satsky for engaging in insider trading in South Jersey Industries, Inc. The SEC alleges that Satsky, who advised on the acquisition, tipped Wolfe with material nonpublic information. Wolfe then traded on this information, profiting approximately $18.5 million, and also tipped others who made approximately $515,000. The SEC seeks permanent injunctions, civil monetary penalties, officer-and-director bars against Wolfe and Satsky, and disgorgement and prejudgment interest against Wolfe and relief defendants. The investigation was conducted by the SEC's New York Regional Office.

Named in this action: Gavin Wolfe, Jason Satsky, Tipped Friends, Evergreen Capital, L.P., Evergreen Financial LLC, Empire Property Management LLC.

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