Spouse of former 'Playboy' CEO Charged with Insider Trading
Ron Galella/WireImage(NEW YORK) -- The spouse of former Playboy Inc. CEO Christie Hefner has been charged with illegal insider trading, the Securities and Exchange Commission announced Wednesday.
William Marovitz is alleged to have bought and sold Playboy stock based on confidential information he obtained from his wife ahead of it becoming public knowledge.
Officials say Marovitz, who is alleged to have participated in illegal trading between 2004 and 2009, gained profits and avoided losses of $100,952.
According to court documents, Hefner instructed her husband to not disclose information he acquired through private conversations. Among the more profitable trades Marovitz benefited from was the purchasing of Playboy stock ahead of the public announcement that Iconix was interested in becoming a potential merger. Playboy's stock increased by 42 percent once that announcement was made public.
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