The Securities and Exchange Commission (SEC) has announced settled charges against Robert J. Schettino, who served as Controller of Napco Security Technologies Inc. (“NAPCO”), for insider trading in advance of NAPCO’s February 2020 earnings announcement.

According to the SEC’s order, Schettino obtained material nonpublic information about NAPCO’s financial results for the quarter ending December 31, 2019 through his role as Controller overseeing NAPCO’s process of finalizing the accounting records for each quarter and the preparation of the company’s financial reports.

The order finds that Schettino sold NAPCO shares approximately two weeks before the February 3, 2020 earnings announcement in violation of his duties to NAPCO. According to the order, NAPCO’s stock price decreased by approximately 22% following the earnings announcement, and Schettino avoided losses of $198,566.

The SEC’s order finds that Schettino willfully violated the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.

Without admitting or denying the order’s findings, Schettino consented to a cease-and-desist order, a bar from serving as an officer or director of a publicly traded company, and agreed to pay disgorgement of $198,566, prejudgment interest of $38,815, and a civil penalty of $198,566. The order also denies Schettino the privilege of appearing or practicing before the Commission as an accountant.

The order does not provide Schettino an express right to apply for reinstatement.