A Morris County man, Justin Jennings, has been indicted for allegedly orchestrating a $2.7 million insider trading scheme by misappropriating confidential documents from his girlfriend's employer. U.S. Attorney Robert Frazer announced that Jennings, 27, of Rockaway Township, faces charges including engaging in a securities fraud scheme, eight counts of securities fraud for insider trading, and two counts of transacting in criminal proceeds.
According to court documents, Jennings conducted well-timed trades in the securities of eight publicly traded companies between February 2022 and October 2024. These trades occurred days before major corporate announcements, primarily mergers and acquisitions. He allegedly gained access to material nonpublic information, including draft press releases, from his girlfriend's employer-issued laptop without her knowledge or permission. His girlfriend was an account executive at a public relations firm entrusted with this sensitive information.
The scheme resulted in over $2.7 million in illegal trading profits for Jennings. If convicted, he faces significant prison time, with a maximum penalty of 25 years for the securities fraud charge, 20 years for each insider trading charge, and 10 years for each criminal proceeds charge. The U.S. Securities and Exchange Commission has also filed a civil complaint against Jennings based on the same conduct. The investigation was led by special agents of the Federal Bureau of Investigation. Jennings is presumed innocent unless and until proven guilty.