Posted on: December 12, 2024 09:46 AM

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Former CEO of Long Island public telecommunications company charged with insider trading

Earlier today, at the federal courthouse in Central Islip, an indictment was unsealed charging Ken Peterman, the former Chief Executive Officer (CEO) of Comtech Telecommunications Corp. (Comtech), a publicly traded company based in Melville, New York, with insider trading and securities fraud.  Peterman was arrested this morning in San Diego and is scheduled to make his initial appearance tomorrow in federal court in the Southern District of California. He will be arraigned in the Eastern District of New York at a later date.

“As alleged, the defendant exploited for his own personal benefit confidential information, including derogatory news of his own impending termination, that was meant to be available only for corporate purposes,” stated United States Attorney Peace.  “In doing so before he was shown the door, Peterman breached the trust and confidence placed in him by his former employer and its shareholders.  My Office will vigorously prosecute those, like Peterman, who would seek to enrich themselves at the expense of ordinary investors and the integrity of the securities markets.”

Mr. Peace also expressed his appreciation to the U.S. Securities and Exchange Commission, New York Regional Office for its work on the case.

From DOJ