SEC Seeks Dismissal of Peizer Insider Trading Lawsuit
The U.S. Securities and Exchange Commission is moving to end its civil insider trading case against Terren Peizer, the former chief executive of healthcare company Ontrak, following his presidential pardon by Donald Trump.
Peizer was convicted by a federal jury in 2024 on insider trading and securities fraud charges. President Trump later granted him a pardon, removing the criminal consequences associated with the conviction. The SEC’s latest move brings its separate civil enforcement action against the former healthcare executive closer to an end.
Peizer Was Convicted After Trading in Ontrak Shares
Peizer, who founded and led Ontrak, faced federal allegations that he traded the company’s shares while possessing material nonpublic information.
A federal jury found him guilty in 2024 following a trial. He was subsequently sentenced to prison and ordered to pay financial penalties and forfeitures connected to the case.
The SEC had separately pursued civil claims related to the alleged insider trading activity. The regulatory case represented an independent effort to impose consequences under federal securities laws.
Trump Pardon Changes the Legal Landscape
Trump’s pardon significantly altered Peizer’s legal situation. Although a presidential pardon applies to federal criminal offenses, it can also affect related civil enforcement proceedings when regulators are pursuing claims arising from the same conduct.
The SEC’s decision to seek dismissal of the case follows that pardon, effectively bringing its enforcement action against Peizer to a close if the court grants the request.
The development also highlights a broader issue surrounding how presidential clemency can influence separate regulatory actions involving individuals convicted of financial crimes. Other securities-related enforcement cases involving people who received clemency from Trump have also faced questions about whether civil penalties and financial recoveries will continue.
