The following excerpt is from the SEC website:
On November 23, 2011, the Securities and Exchange Commission charged former professional baseball player Jeffrey S. Richardson with insider trading in securities of Genesis Energy, LP ahead of an April 26, 2007 announcement that Genesis would acquire several energy related businesses owned by the Davison family of Ruston, Louisiana. The Commission also alleges that Richardson tipped two family members and one friend who traded in Genesis Energy securities. Richardson has agreed to settle the matter.
According to the Commission’s complaint filed in U.S. District Court for the Southern District of New York, Richardson, who lives in Grand Island, Nebraska, received confidential information about the acquisition from a person knowledgeable about the negotiations between Genesis and the Davison family. In breach of a duty of trust and confidence he owed the source of the information, Richardson purchased units of Genesis on six separate dates between February 26 and April 25, 2007 based on the information he received regarding the acquisition. During this time, Richardson also illegally tipped two family members and one friend, who traded on the confidential information. Together, Richardson, his family members and the friend made profits of $88,026 from their illegal trading.
Without admitting or denying the complaint’s allegations, Richardson has agreed to settle the Commission’s charges by consenting to entry of a final judgment permanently enjoining him from violating Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 10b-5 thereunder, and ordering him to pay $88,026 in disgorgement with $21,534 in prejudgment interest, and a civil penalty of $88,026. The settlements are subject to final approval by the court.”
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