LOS ANGELES
Terren Scott Peizer, 65, former CEO and chairman of Miami-based Ontrak Inc., was sentenced to 42 months in federal prison for insider trading—marking the first prosecution based solely on misuse of Rule 10b5-1 trading plans.
Peizer was also ordered to pay $5.2 million in fines and $12.7 million in restitution after a federal jury found him guilty in June 2024 of one count of securities fraud and two counts of insider trading.
Key Facts:
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Peizer used two trading plans to sell Ontrak stock while possessing non-public information that the company’s largest client planned to terminate its contract.
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He avoided $12.5 million in losses by selling shares before the news became public.
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Peizer ignored multiple warnings and refused a cooling-off period, starting sales the next trading day.
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On August 19, 2021, six days after initiating one of the plans, Ontrak announced the contract termination, and its stock plunged over 44%.
FBI conducted the investigation.