PHILADELPHIA — The Securities and Exchange Commission is suing a former vice president of Ocwen, citing alleged fraud.
The Securities and Exchange Commission filed a complaint on Sept. 28 in the U.S. District Court for the Eastern District of Pennsylvania against Bryan R. Ziegenfuse, alleging violation of the Federal Securities Law pursuant to Insider Trading Prevention Policy and the Code of Business Conduct and Ethics.
According to the complaint, between 2017 and 2018, while the vice president at Ocwen Financial Corp., defendant Ziegenfuse purchased securities in PHH, Ocwen and Ocwen's counterparty Artisource Portfolio Solustions S.A., respectively, and made approximately $64,065 in illegal profits.
Ziegenfuse owed a duty Ocwen not to trade in the securities of any companies based on material, nonpublic information in his possession as a result of his employment at Ocwen, the suit says.
The plaintiff holds Ziegenfuse responsible because the defendant allegedly misappropriated from Ocwen material, nonpublic information regarding Ocwen's anticipated merger with PHH and the CFPB's enforcement action against Ocwen and knowingly or recklessly traded securities in PHH and ASPS, on the basis, and while in possession, of that information.
The plaintiff requests a trial by jury and seeks to disgorge all illicit trading profits, pay civil penalties, and grant such other and further relief as the court may deem just, equitable or necessary. They are represented by Christopher Kelly, Katie Hopkins and Assunta Vivolo of the U.S. Securities and Exchange Commission's Philadelphia Regional Office.
The U.S. District Court for the Eastern District of Pennsylvania Case No. is 2:18-cv-04192-CMR.