The SEC filed a settled action against Rakesh Ahuja, a former senior associate at a registered investment adviser managing investment funds focused on biopharmaceutical and biotechnology companies, alleging he traded through a close relative’s brokerage account using confidential information obtained during diligence on biopharmaceutical and biotechnology companies, in violation of the adviser’s insider trading policy. The SEC alleged trades in three public companies on four occasions, resulting in approximately $65,000 in profits. In connection with two such companies, FINRA asked Ahuja’s employer to report whether its employees had any knowledge of, or relationship with, individuals listed on a FINRA trader identification list (“ID List”). The ID List identified persons who may have been involved in trading in the securities of the companies close to the public announcements of positive clinical trial results. Although Ahuja’s relative was included on the ID List, he denied recognizing anyone on the list. Ahuja agreed to disgorgement, prejudgment interest, and a civil penalty totaling more than $143,000, and a two-year bar from association with an investment adviser, broker, or dealer.