The SEC has settled insider trading charges against three Michigan residents over trades made immediately before the acquisition of Y-mAbs Therapeutics, Inc. by SERB Pharmaceuticals. The case is notable not for the size of the trading profits, but for the unusually clear information chain described by regulators: acquisition information allegedly moved from a SERB employee to the employee's spouse, then to her law-firm partner, and finally to family members who bought Y-mAbs shares before the transaction became public. The SEC says Y-mAbs stock closed 103.34% higher on the day the acquisition was announced, producing more than $34,000 in combined trading profits for the individuals who received the tip.
U.S. Securities and Exchange Commission (SEC)
Official Release: https://www.sec.gov/enforcement-litigation/administrative-proceedings/34-106499-s
NEWS:
According to three SEC orders issued on September 25, 2026, the trading occurred ahead of the August 5, 2025 announcement that SERB Pharmaceuticals would acquire Y-mAbs Therapeutics through an all-cash tender offer. The SEC says a SERB employee involved in the transaction told his spouse that the acquisition had been finalized and would be announced the following day. The spouse then shared that information in confidence with her law-firm partner, Venar Ayar. The SEC found that Ayar subsequently passed the information to his brother, Vincent Ayar, and his cousin, Johnathan Denha, and advised them to purchase Y-mAbs stock.
The orders state that Vincent Ayar bought 1,847 Y-mAbs shares on August 4, while Denha purchased 6,200 shares. Denha then passed the information to another cousin, who also bought stock. After the acquisition announcement, Y-mAbs shares closed approximately 103.34% above the previous day's closing price. The SEC calculated profits of $7,831.25 for Vincent Ayar, $25,604.65 for Denha and $808.96 for Denha's cousin. The case shows how regulators can reconstruct a short chain of communications and trading activity even when the person who originally possessed the transaction information did not personally trade.
Without admitting the SEC's findings, all three respondents agreed to cease-and-desist orders. Venar Ayar agreed to pay a $34,244.86 civil penalty. Vincent Ayar agreed to disgorge $7,831.25, pay $274.72 in prejudgment interest and a $7,831.25 civil penalty. Denha agreed to disgorge $25,604.65, pay $898.20 in prejudgment interest and a $26,413.61 civil penalty. The SEC said the investigation originated from its Market Abuse Unit's Analysis and Detection Center, which uses data analysis to identify suspicious trading patterns.
KEY POINTS:
- The case involved trading before SERB Pharmaceuticals' acquisition of Y-mAbs Therapeutics.
- SEC records describe a four-stage information chain involving a company insider, spouse, lawyer and relatives.
- Y-mAbs stock closed 103.34% higher on the acquisition-announcement day.
- The identified trades generated more than $34,000 in combined profits.
- SEC market-surveillance analysis helped identify the trading pattern.