SEC drops insider trading suit against ex-healthcare executive pardoned by Trump

• Peizer was a protege of Michael Milken, once considered Wall Street's "junk bond king."
• In 2020 during his first term, Trump had pardoned Milken, who had previously pleaded guilty to securities fraud and served about two years in prison.
• Critics and rights advocates have often pointed to such pardons as examples of double standards as Trump has used fraud claims against some migrants to pursue a hardline immigration crackdown, especially in Minnesota earlier this year.

Here are the details:

• In 2023, Peizer, 65, the founder and former chief executive of healthcare company Ontrak, was charged by the Department of Justice with insider trading.
• The SEC also launched civil insider trading charges against him in a parallel action.
• At the time, authorities called the charges groundbreaking. It was the first criminal case involving the use of a pre-arranged stock-selling program designed to help shield executives from such charges.
• Peizer sold more than $20 million of Ontrak stock between May and August 2021 while in possession of material non-public negative information related to the company's largest customer, authorities said.
• He was convicted of insider trading by a federal jury in Los Angeles in 2024. Jurors found him guilty of two counts of insider trading and one count of securities fraud.
• He was sentenced in 2025 to 3.5 years in prison.
• Trump pardoned him in January this year.