NEW YORK CITY -- The U.S. Securities and Exchange Commission has charged a former employee of Green Mountain Coffee Roasters Inc. with participating in an insider-trading scheme that netted him and a friend $7 million.
Chad McGinnis of Morrisville, VT, was a systems administrator in the Waterbury, VT, roaster's information technology department. He and his friend, Sergey Pugach, of Hamden, CT, reportedly obtained quarterly earnings data from shared files on Green Mountain's server. They allegedly used the data to trade in advance of their public release before earnings announcements since 2010, the SEC said.
Green Mountain said it fired McGinnis for violating its insider trading policy and that it is cooperating fully with the government's investigation. The company also emphasized that there had been no allegation of wrongdoing on the part of the company.
"All indications are that this case involves an irresponsible individual acting alone and we have no reason to believe anyone else associated with the company was involved," Brian P. Kelley, Green Mountain's chief executive. "We are appalled at the alleged actions of this individual."
A hearing has been set for Aug. 7.