WASHINGTON May 3 A former accountant at the
U.S. Securities and Exchange Commission (SEC) is expected to
settle parallel criminal and civil charges, after he was caught
illegally trading options while working at the agency, according
to multiple sources familiar with the matter.
The charges against David R. Humphrey, a 16-year SEC
veteran, represent a rare instance of the SEC taking enforcement
action against one of its own employees, and constitute an
unusual violation of the SEC's ethics rules.
Humphrey is charged with one criminal count of making a
false written statement, after repeatedly filing false
government ethics forms that failed to disclose certain
investments, according to a federal court filing.
Sources familiar with the case say he is expected to plead
guilty to the criminal charge, and settle related civil SEC
charges, after he was caught trading options -including many on
his SEC work computer - over the course of more than a decade
for himself, as well as for his mother and a friend.
(Reporting by Sarah N. Lynch)