A former head of equity trading admitted using confidential information he received through his job to make personal stock trades that generated $220,912 in illegal profits.
Ryan Squillante, 40, of Weston, Connecticut, worked from home for Irving Investors, an investment company headquartered in Denver. His position gave him access to material nonpublic information about publicly traded companies before that information was available to ordinary investors.
Squillante admitted using confidential information for his own benefit on 15 occasions between August 2022 and May 2023.
He pleaded guilty to securities fraud in June 2025 and was later sentenced to two months in federal prison, 18 months of supervised release and a $331,368 fine, according to the U.S. Attorney’s Office for the District of Connecticut.
His Job Gave Him Information Other Investors Did Not Have
As head of equity trading, Squillante regularly received material nonpublic information about companies whose securities traded on public markets.
That type of information can include developments an ordinary investor would consider important when deciding whether to buy or sell a security but that have not yet been disclosed publicly.
Squillante knew he was not permitted to use confidential information obtained through his employment for personal trading. Federal prosecutors say he nevertheless executed transactions for his own benefit while possessing it.
One Drug Trial Trade Produced a $46,421 Profit
Prosecutors highlighted Squillante’s trading in Praxis Precision Medicines as one example. In February 2023, he received confidential information involving Praxis, a clinical-stage biopharmaceutical company whose common stock traded on Nasdaq.
Between Feb. 27 and March 2, Squillante sold short 38,086 Praxis shares at an average price of approximately $3.04 per share. Before the market opened March 3, Praxis publicly announced disappointing drug trial results, saying the drug’s effects had failed to achieve the primary endpoint with statistical significance.
Squillante then bought 38,086 shares at an average price of approximately $1.82 to cover the short position. Prosecutors say the series of trades generated approximately $46,421 in profit.
The Criminal Case Covered 15 Trading Occasions
The Praxis transaction was only one part of the conduct Squillante admitted. Across 15 occasions between August 2022 and May 2023, prosecutors say he made $220,912 by trading securities while possessing material nonpublic information obtained through his employment.
Squillante waived his right to be indicted and pleaded guilty June 6, 2025, to one count of securities fraud before U.S. District Judge Vernon D. Oliver in Hartford. The offense carried a statutory maximum sentence of 20 years in prison.
The SEC’s Civil Case Used a Different, Narrower Set of Figures
The Securities and Exchange Commission filed a separate civil enforcement action in September 2025. Its complaint alleged that Squillante traded on confidential employment information involving at least 10 publicly traded companies and described at least 11 trading occasions, many involving confidential information about potential secondary stock offerings. The SEC calculated approximately $216,965 in illegal trading profits, slightly less than the $220,912 attributed to 15 occasions in the criminal case.
The Judge Sentenced Him to Two Months in Prison
Judge Oliver sentenced Squillante on Sept. 23, 2025, to two months in federal prison followed by 18 months of supervised release. The court also imposed a $331,368 criminal fine. Squillante was ordered to report to prison Jan. 7, 2026.
His separate SEC case reached a final consent judgment on Jan. 29, 2026. The court ordered $216,965 in disgorgement and $33,800 in prejudgment interest and permanently barred him from future violations of the federal antifraud provisions at issue.
The SEC said those monetary obligations were deemed satisfied by the fine imposed in the parallel criminal case, meaning they were not an additional $250,765 payment on top of the criminal fine.
Confidential Information From Work Cannot Be Used for Personal Trading
Investor.gov explains that illegal insider trading can include trading on material nonpublic information misappropriated through an employment or other relationship of trust. It can also include passing that information to someone else who then trades.
Employees who receive potentially market-moving confidential information through their jobs should not trade in the affected securities or share the information with friends, relatives or other investors. When there is uncertainty about whether information is material or sufficiently public, the safer course is to stop trading and consult the employer’s legal or compliance department.
Investment firms can reduce risk through written insider-trading policies, restricted lists, preclearance requirements, information barriers and monitoring of employee trading where appropriate.
Suspected insider trading can be reported through the SEC’s Tips, Complaints and Referrals system. The SEC specifically accepts information involving insider trading and recommends providing detailed dates, people involved and supporting records when available.