SEC Charges Former Bankers in $18.5 Million Trading Scheme

The SEC has charged two former Wall Street investment bankers with fraud for trading shares of South Jersey Industries before the announcement of its acquisition on February 24, 2022, resulting in a profit of $18.5 million. The lawsuit states that Satsky was the head of the energy and utilities investment banking division at a New York bank, responsible for South Jersey's business and was a lead banker for the deal. Wolfe traded approximately 2.2 million shares through eight nominally different entities, purchasing at least $53 million worth of stock between November and December 2021, profiting after the stock rose about 40%. The agreement stipulated that the Infrastructure Investments Fund would privatize South Jersey Industries at a price of $36 per share, valuing the deal at $8.1 billion. The SEC indicated that the two had discussed potential acquisitions multiple times. Following the exposure of the case, the financial regulator prompted the bank to conduct an internal investigation into the trading of South Jersey stock. Bank of America terminated Satsky in March 2025, and the Manhattan U.S. Attorney's Office is also investigating the same transaction. Both lawyers deny the allegations, with Satsky defending that he did not convey any material non-public information, and Wolfe arguing that his purchases were based on his own investment thesis, claiming the SEC ignored testimonies and evidence.