Editor’s note: This post has been updated to accurately reflect Peer’s job title.
A Seattle therapist agreed to settle charges from the U.S. Securities and Exchange Commission that he used inside information from a client who worked at Zulily to make more than $10,000 in profits through stock trades following its acquisition by QVC parent company Liberty Interactive.
The U.S. Securities and Exchange Commission alleges that Kenneth Peer got inside information from counseling sessions in July 2015 with a Zulily employee that the Seattle e-commerce company would be acquired. Between July 21 and August 10, Peer purchased $28,000 in Zulily stock.
On Aug. 17, the $2.4 billion acquisition was announced, and by the end of the day, Zulily stock had spiked 49 percent. Shortly after the acquisition was announced, Peer allegedly sold his Zulily shares for profits of approximately $10,000.
As part of the settlement, without admitting or denying the allegations, agreed to pay a fine of $21,267.26. That includes paying back the profits he made off the illegal trades, $10,227.73, plus a penalty of the same amount and interest of $811.80.