The Securities and Exchange Commission has filed a lawsuit against Jason Satsky, a former head of energy and power infrastructure at Bank of America. The regulator alleges that Satsky shared material non-public information regarding a planned acquisition of South Jersey Industries with a close friend, Gavin Wolfe. According to the complaint, this exchange of confidential details enabled Wolfe to generate $18.5 million in illegal profits.
The SEC states that Satsky was the lead investment banker for the potential sale of the natural gas utility. In September 2021, the chief executive of South Jersey contacted Satsky to hire him to represent the company in a possible transaction. The complaint asserts that the two men communicated multiple times while Satsky possessed this sensitive information.
One specific instance cited by the regulator occurred on November 9, 2021, when the pair attended a university basketball game at Madison Square Garden in New York.
Following their meeting, the SEC claims Wolfe created a calendar entry at 12:12 a.m. containing the ticker symbols for South Jersey and another company. Between November and December 2021, Wolfe purchased more than 2.2 million shares of South Jersey stock at a total cost of $53 million. The utility company announced in February 2022 that it had agreed to be acquired.
The SEC alleges that Wolfe realized $18.5 million in profits from these trades. Wolfe, who is also a former Bank of America employee, was not working at the bank during the period of the alleged misconduct.
The filing describes the relationship between the two men as one involving a long history of exchanging personal and professional favors that extended to their families. The complaint references text messages in which Wolfe assisted Satsky’s son with a university application.
