UnitedHealth exec's husband to settle insider trading allegations for $140K

James Hengen, the husband of a UnitedHealth Group executive, has agreed to pay nearly $140,000 to resolve Securities and Exchange Commission charges that he engaged in insider trading after spying on his wife, according to the Star Tribune.

Mr. Hengen made $32,315 investing in USMD in 2016 after overhearing his wife talk about UnitedHealth's pending acquisition of the company. He made $31,489 investing in Surgical Care Affiliates in 2017 after looking through his wife's notebook and learning of UnitedHealth's plans to acquire the company. Mr. Hengen also passed along insider information  to his brother and three co-workers, who were not charged in the case.

"[Mr.] Hengen concluded that UnitedHealth likely was in negotiations to acquire the company referenced in his wife’s notebook," the complaint says. "[Mr.] Hengen knew this information was both material and nonpublic and that it was wrong for him to trade on it."

As part of the final judgment, Mr. Hengen must pay back his $63,804 in profits as well as $72,114 in penalties and prejudgment interest of $3,865.

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