l o,;~I'h G. S'\U~OH(, O"p"ty O);c/, Market Abuse Unit Danid M. Hawk,," r.,,~thi Krish""-murthy Cha.m A. Chandn~khu Attorneys for I'l:iintiff

14

SECURll' l liS AND EXCJ lANGE COMr.USSION New York Rcginn~1 Office Dmuk6cld Place 200 Vesey Street, Suite 400 NcwYork,NY 10281 (212) 33(,-0116 (Ktiehn:unurthy)

cv 7Ji'!1t!~ D[fJ rg fl Sfp 16101/ W

lJ.S.D.C.8.D CA,SlfIER,'SN.l',

.Nol admitted in the U.S. District Courl for th" Southern Di8trict "r N"w YOlk

UNITED STATF.$ DISTRlCT COURT SOUTHERN OrSTRICT OF NEW YORK

SECURITIES AND EXCHANGE COMMISSION,

Plaintiff,

DIMITRY 8HAVERMAN

Defend",!!, -and-

VlTALYPUI'YNIN,

Rdicf Odendant.

14-CV -_ (--l

JURYTRLALUEMANDED

Dd.,,".n! J)iltlil,y [lravr.rffiall ("l\t~,'~tman") ~nd ltdid J)cf.ndan! Vmiy PUpY";11 ('Tlll'ynin").

SUMMARY

I. F.rom 2010 through 2013 (the "Relevant Period"). B.a ~cml:ln iU'B"IIi moded ",,<I

the "'W finn Wil\Ofl Son:IJui GoWneh & Rnuti. Prof..uion~ 1 Cor p",",-uon C'WiltO:o ,S.on,iruj. li e

pwlit<:tl l>y ""Cl ~300,lXlO twm hi, ;licg,] trading.

2. [ll11U18 the ){d"v~n l. P""iood, WilSlJl) :;."";,,; ~tlV;'M c,;mpouues on m.~!,!"" ~"'!

~<lui,itiou" \ MM '?, il'tduJing throUf:ll oendet 0(£.."111, :lItd mba cotpor.ce mo.n.actlom. The

,",xisrcnce, u~nl<e, ~po.ltiming of such Ikals we,e hiShly .".1cr:i:i1 1O Ul'l'estOn. Wd.Oll So,,~;ni kep.

I. hi> and ocher infutrnar.ion .bom the ded. tonli<lcnr.i~lllmil che deol. \\'Il., p11blidy .noollnccd,

3. Hr~V~T1!1a" ",,,riled a; .u lni"',' l'In"iloll ttclmology ("Jr ') \'J'1lplo)TC ~t Wil",," NnlSUU,

Uting his !T cn.:t!cnuah Or otherw:i~ II '"-,,cnnau obtoJJ.led WllllOn :;"wlOini'. d<:<."U<>nic information

~buut dght impendulg d • .als;o which. Wibool SOlllJlIi IqU:C""ntL.,j ""c I '~r!y.

4. O n the 1",,"-. of tha .. :nformotion, .Hl~~c"""n pun:hasf d nod and slack option" in

elghl companie. (the "C"mpalm.''), each a patty r.o (mc of th •. den)" ~fo"",, th. de.l

lWlounccn"' '''~. ·BN"'.tmall typic .. uly w id hi. ~ l.OCk o~ exu.:::i..,.! h", .tf,l<"k "I'd"". shor tly aft"" the

<JcoL. __ "tC :'l1Inounced ro lit .. public

5. I3.ntY,·.m~n ~lso Lippa! his b.Wlhe. (.he " Brother") 10 put.:::b~se.tock and stoc~

opnoo. If' two ..,f \he ComfY.lni . .. :u.n,l of de",,1 ~tlnmmcements 1DvoivOllllho.c (:"'''l~~1l1''' .

6. When 13(~Y".tma n I."'g~n hi. ill~der uading "c h~",e in 2010 ~nd carly 201 1, h.

n.,.,ul"d hi. own t(,uk.,. Ihr<>ugh pClllOoal aCCOll n(x it> hi. nawe.

7_ In ApnJ 201 1, fede.,.l aimio~1 ~"lhollues and the Cornmtn;"" ~hargctl :.l Wilson

So",.;", "''''yet WI th ins.rder t!li" );"!; in ~ , "nib . scbtme.

H. Over th~ r\~d few hOll .. , Dr,we.rlllfln hqll;d~tctl L.he 'clIl.lllj"fl !ecuritLe. h •. had

J".Lf~h . ,.d b~se<l OJ L ;,, "id~ infonl!a[!on , Two d.y. l ~ l"t, Ibe Broth .. ';Il111:t.l ly h'lul<I,!ed hi. ; l k~~ l

2

9. Appmximardy ~t~n m <.>nfM 1:.1(el, in Seprember 2012, f\ r.v~rolOJl optned

(directly or imU,ccuy) ~ bwkel1ge .ccount ill Ihe Dam e ofPl1pynin, 1I1aVCt",~n'" [d~tive .nd a

Rusmn citizen and re.sidel.ll

10. II r,weEfUan u..n this <lCOOUtl' (the "P"uP)llln Acc.ount'') fwm November 2012

th roogb lk",,,,,,bcr2013 to cootinue 1m i.I..'P insider modmg and concal it from federal ~mhorlri .....

11. D uring the Relevant Period, Iha\wn~n T~apcd rnor~ Ih~n !:}OO,OOO III ilI-g(){reIl

!pin. f\U1n in.id~· trading in both hi. accounl and ,be l'upynin Accoun!.

12. The 1I.other pro~ by over $1 ,800 b;L!oo on DU""'"," Il 's iIl~ tip..

VIOLATIONS

13. By vi:o:t\~ of the condlKt alleged "",e, BlIlveIlnall ellgaged in in~tkr trnding in

vlol~rion of Section 1O(b) of ,be Seenri,;". mhMg" Iocr of 19.>4 (the '·Exclu>.uf:" Act'') [IS U.S.c.

§ 78j (b)], fu,ie IOb-5 thCt(:Wlder [17 c.P.R. § NO.I Ob-S], Section 14(e) of the & chonge Act [15

U.s .c. § 78n(e)I, and Rule 140:-J thetcun<k, 111 C F.R.. S 240.14e-3J. UmCllO' Unov<;mun i3

permanently resuaj,>e<J and cojoin~"'" he ",-ill al;llin envgo: in the~, rrllc~ ::and courses of

lJu.;nc"" ",I forth in Ib.i~ Comph int and in acts, pO&.;tic~ and cour~ of b\ISlllen of ,imi]su type "ud

object.

NATURe Qf n IE L1:t,OCEEDINGS AND ItbJ... IEi t' SOUGHT

14. The Coll"lr:n~ioll hrings dus aCOOIi un<lcr lhe authonty eonf",.ed upon il by.x.:oon

21 (d) of the uch3nge .ACt (15 u.s.c. § 78u{dl l. "The COnUlll...iOn ~b [a 1't: lman~l)tly ~-n;oin

lhaveonan from cnp~inr, in the tran"actio"~, ~Cts, pnlcnce:s, and COU1;S<:~ of bu~i""i'" illeged"n thi.

Complai<lt, and .eekl ~n onlN ''''iuiti''g BnVertnl.D to di.go1"gc ,,1] l'",Gu reAlized or other ill_gon~1l

g~ in~ fro ... ille um..I>.·ful im.iJ.cr I ..... ding u tiv;ry sct f .... nit in Ihis emnpb ulI , cor.eth", with

pt~i...Jgm<:n1 int~t. Thc Commisoon also bcing~ Il>i. action, pursuant 10 Section 21A ofmc

P.xcmn~ ACI [I S U S.C. § 781.1-1 j, for civil p<:tl"lti.,:$ ~gai>.'" t lluvn man. 111e Ctlmmi....ioD funhet

l

•• ",k;, ~ final judS"'crl ' ordering Pllpynin lo .mg()lr,e the ill-S"ucn g:oms ~cr.>ted Ul hi, aHOUlll ~nd

I,) p.y pr. Jud gm(,J\t ;Ole: ... t theI~<A'

1 S. T<l toll;nWIl the >la/,,' 'lH'J _od prel~,t\'e ~ .. ,," <llifi~lent for Dcavelin." to P~1'

d.s~m .. rot , p"'judgrneat Intelo;t ,,00 ci"d pe":lln.:.< ~"cl for Pupynm to p:lf di"8'0tg ... .....,no and

I><ejudgm.:m inlerU! io ~=....."cc ,,·jlh any final )U<ISm~n l of this Cou!\", !h ... (;.ommL"";01l-",eh

~nlcrgenC)' ttlicf (I) .Ilu poo>ing ""...,1 freu e. 00 Bll'IVCmlan and Pl1pynio), (u) K'l,,;ring Ilr .. ,'cnnoo ~od

Pupyni n w repatriate all ti:aud"k~ll I,wc~e<.l . lh~ 1 ~l~ ""w loc.t •. d "bmlLd, ()Lll _~ ic.lc ,he Court"

jur»;<.liction, m d (Iii) plXvcnul.lg the destnlCt1()!I o f docum.lIts_

IURISDICTION ANO v:E~W

E,.'l:ch.nge Act [15 U.S.CO §§ 7HlI-l &7Sa~l,

17. Vrlluc Ii,,-, in this District PU('!\ LUtll L:O Section 27 "f the 1 1."ch~tlge Au [1 5 U.S.CO

§ 7&...). Uamio I.>f ,he :lCD, practKc., " "",ulio"., uld COU";CO; tll bu.<i01e5' ~ U.g«l in 1m. eo"'plaim

occuu.,.1 wifhin the Somhem Di~trici of New Yotl,. Anmng other things, '"VIlle Ji". in this Dulcie,

h <--.;~u", Braverman uUd~I1.()o1k inSJde:r crndillg in ~CGurilJe. Ii.t •. .! on N A$DAQ ~nd the r-."YSE

Amc:<, which He hm.it he~d'1\larte1ed in N ew York City.

D c:reOOp ' I @'liI Rclie (Pdrnd" " ,

I 8. .n O"".Ivcnna n, age" 1, Ie-'<ld"" i" &in M~tco, C. lifm" ia. Dunng thf Relevant 1'"tiooJ,

1]1!: Eit.bl C!!IDpil!! ; t 1!

20, GymbClr~~ CoqlOration ("C.ymbvr~,,") w~, a [)ela"'''t~ corpomuon with

hca<iquart",,, i" :;~!\ f't'lIncisoo, C"lifotni~. l :IlW Dllll Capito I l-' ~ttnct<, r J.c ('lhin GpitaP')

"<:qlllUd Gymlx.>.ce"'l1 Novembtt n, 2010 through I t~ .. dc~"crer, Gymbol'ee'. oommo(l $to<;k W,U

~gtstered win. .he C:ommission pun;u:onl 10 S«1UlI1 12(1.» nf tile fuchanr,t. Act ~l)d "''"' lis.ed nil

the NA-Sn,\Q "lock Ullltket "",jCT ,he tidu .ymhol "(T YMB."· WilS O" Son!oll); "1'TL""\cmNI

Gymhorcc ill ;l' ' ~'J l..w.;.1 i,,,) by [hill C~pital.

2t. <lrugsto«o.oom, Inc. ("dn'gslore.C(,m") WlU 1 J)d~"·~,,, e,)rl'0ulion with

headquarrers in lldk ... u~, Wuhmgton_ emil WJJgreen Company ('·W .. \greau'j acqwred

dn'gSlOlt_COlJ) "" June 3, 2011 , dtng><t<"'C.(nm'l common .tuck ",-en rcgiSlefed with the C ... mni«ino

pUI'''iUlr t<) Se~tit)n 12(b) "f the Exchangt' Att ~!Jd w~, li,tcd on me N.'\SDAQ "ock lnarhl \mder

the ticker 'ymbol "DSCM." Wilson SoIl&1ni re!"'CII~med drue8tolc.eO/>l;0\ i'tI acquisitiDD b~'

WaIgr.=Is.

22. Epicut sor., ..... re Corponujon ("F:Vicor") >1I2S" Dd,.wu~ ootpontion ,,·i,b

huJqllatten in Irvln~, (:"lifomio.. Until Ap"'" J>~n fICrs 1.1'. ("llP''''! ~~q"i ,,:rJ "pic"" on M.)· 16,

2()ll dlroUgh a t""Jet ... ffu, Epicor', co',,'nnn ' lock was Ieg;"'~t"J ",;Ih lh~ COlllnliSSlOn p,",,,u~n'

10 Seetion 12{h) "r lhe Exchange Ad m d ,,'U lilled " " fh" t>.:ASDAQ Ilock all\lk~t ""Jet Ihe ucker

S)-mI",I"EPIC." Wi1s\n. !\on.ini ~p=erucd Bpi",,,, ill "" "cqui,mon by ~p"'"

23. St~ce Technology P LC r'SeaJla'''J IS ... lti.h ""'1lOtllUoo w.th head'luart".~ in

Dtlblm, Ireland . ii"~gale'5 COmmon "i)~k i, roj:!:1S~, •• 1 with .),~ Cmnmiuion illd is lhted or) the

NASD.A. Q sto.:i< mullet \1lJ<kt th~ .id,,,,, sytnOOl "STX." \Vilson SOllliru [ep{e'~Slt"d S c ~S"'c in HI

t'<f"ity tr.ltl<,cuon with !i~m.'unK Elecrroni<::l CQ., I JJ. ("s.:.nlSw'g',).

24. Y.M II io:<eience!I Inc. ("YM Bio:<eiencrsj was a C.,,~Ji:r01 cn'1,<lr.luon with

h~.,.<lqua.t~n in 01)0011), C:l!uda. llntil C;il".d St;,Cf}(es , Inc _ e(;,k.d Scicn~t~") oc<Jnircd Y.:\{

,

Bie<;nenc,," ' ''' 1 "cbrual'Y 8, ~ 1)1 3, YM Bio'Cle.ll~el'l Cu m1non stock W~I ~~r,i,t.("d w; th I,he

ConurU,*;"m p\l.t:\u:.u.u to S...:t1o<1 12{b) of the Ex(:h'''<g<: Act .nd w., lmtd on tn~ l\:SSE Amex

<rudel tbe , ick~t symbol "YM I " WdsOll SOIlsmi IXpn:" .. "uted Gilcod Science. io '''' ~C<f\lJSJ tiDlI of

YM tlil_icnce~.

2.S, Astcx Pharmaceu ti cals, In", ("'''Hex'') w"'. Dd .. wu~ ~<1'1'"t"Hion "'1th

hcad<j .... ne" in Dublin. C"liromio.. Until On;uk:. I'h~m12ceutiool C<.>., 1.1d. r'()rnJl<a", a('<IUirc<I

!'-'teo ru, Octo~. 11 , 201 J thn.>LIW' a lo'",l~ . "He!, Altcx'. co."''''' .... . lOci: was rcgil;lcrcd with the

ComnllSSJOll p\lr.:",~m to Section 12(1)) of the El<cbange ,"'<:1 ~nd "'~s Wtled on me NAS.l) AQ ~lod:

marht lUI""', I he Ucker symbol" t.STX." \'(iilson S ... n.,in; tcp",stnted Astu in it> 'It;qui.<ilioD br

Otsnh I'h.nnllceutical.

26 , DC,I1crtr:l<:.k T ecimulogics, 11l(:, ("De;o.!crtmck") i ~ a Iklaw~re corpor~ti<.>1) with

hudqu:utea in I .... ke Success, New Y ... ,"", Ocale:mu:k' •• t!xk i. rcgi.taed with the ComrniMion

p=m '" ::.c.:UOIl 12(b) Qf Ihc I"'cru..lg" Act anU "Ii.,,,d OIl <he KJ\SOJ\Q "'0<.1< !lUrker UDder

the ti.: k~"1 ~ymbol ' 'TR.'' K." Willon Soo,ini rC"J'rc~cmed D •. al ... w lJ> in ,,~ ~cqui..ilJon by o.....JtU''''k.

27, Xytat"x Ltd. ("Xyratcx") w~. " D • .rm,,(1~ co'1"" .... i,m wiLh head<Ju:utt~~ ;n H~" ~nt,

United Ki<lguutn. Until Seayt" llCquitcd Xyco lQ. Ot, Man.:l. 31, 2014, Xytlltex'. common Stoci: .......

• ~gi'tf:n:u "'jth the Com mi"irm PWSlJOot 10 & u i,m 12(b) of the r:xch~ng~ ACI ~od was bsted Oil

the NASDAQ . "",k math! lInde, Ille tkkct ~,.nlbol "XRTX " Wil"m &)11Sini '.p'."'rlTt" ! ~" "g"'"

in us a.::qui. it1on of X),mlex ,

2H, Wil",,,, ~>h'\ni iI ~ global hw ft.,,,, 111 201.3, \VIl""" ::;';n,;ni aJ"j""d clients on mOT"

,h~n 110 M&!\ tI. "'~cli"u." wid, a CUIn},;nc,! "Jue of mOTe Ih." $19 bil),,,n. \Tilsoll Sul\~; ni h •. ,

fourteen of~ wurldwide.

2? At ~U rek'-::Inl till""" Wil,on Sonnui h~6 o",inl<lincd (ulnl.l'ide pobdn th~t ''''1" ire

employ., to m:LinlllUllhe confi,kmialitJ "f c.htnl-r<.:lat"J informauon and that p.tohibir. in,jd~r

tn.ding wd tipping 011 the tn ... of n\~ L"rial, !loll-pul,li" infnIm~tian acquu-«l fru," the fi rtr\, At ill

rekant time<, WWOD Son.illi h .. ~ al.a uqllrn:d U~ ~m[>l<ly~es to confirm that th,-1' ha,-" OC".ill ~fld

"Il<!cn.tond these po!Jcial anti ,h: • .! Ihey ~r.r"' 10 ~!n.Jc by thnn.

'\0. Sinc~ WOO, f\,.~,'crllliltl ha~ wl"hd fflr \'('.iIson Soll"mi', 1'~lo A hn "ffice in yatlOU,

IT role,. inclu<1iuij: ~~ nii>r infoIllution 'Y't"n,. cllgmcCf, On th" d.y he j"il1~d Wilson Somini in

2000, n",,,.,un,.,,, atrCllte..i th.tI h., Iud rc.ul and I.Irnientood Wil .... n g(ln.iui's client confidenti..!ity

tnd insider tnlding ,lOliCle5 lind ~gn:cd to _bIde by them. In AI,riI 20 l l, ~{Ier th., ~nest of mol her

Wiloo" 50nsini employee 0" in.idct trnding t!uug"'" Braverman confir.ro~d hi:! ~gn:cn""'l 10 abide

by the (",m', pIoWbiri')Tl; 1m in""d~I trnding ~t\d lipping.

O ys;ryjcw of Bral.'crman'w ' Millet TrWUe Schs:ms:

3J. All an rr cmplo)"x, 8 r;" ,.,rnun ""or..k~<I "n progrntlUlUllg ft nd maintai ning .,,{t:\O"J.f'e

fOf Wi!.on Sonsim's Ji,,~n~i~l ~~~'<:mS. In th~t OIp2dL~, Br:av,",m:m had a= I() (mn dola~ thaI

C (",{~in~d infOlm~ri"Tl Qoout n.w eli..,t m~t 'cu, c!Jent confJk" ehe~h, hilling reco:d. , ~ml atTor>\cy

~n~ ,hen,. !-Ira,' erman's ~cc~," to ,f,,, {in,,'s r l' sysn,m" gave lilln a~,11 to m~l~rial ""npul,lic

i"t<.lfrmJ;()(l .ooul ia'l-"t'n,li ng M&.A deal.o III whi<:h Wil'lon Scr!sini c~ .. tc1l:11tcd """ I'~[ty. 'this

in ionU:llion mc.h"k d ,he C:WI~DC~ and natu", of the impending ..... .,.1" ... wcU as the id~mi()(O; of {he

32 OluulB th. Reb'~nl l'ciiod. llrovCTm",l ~nc",,.d Wil,OIl Son,uli'. material

mmpu)'lic infO!mation ~l ~ Hlt i!llp~tld.inr; tun"rli"n~ ;,,,,ol\'111g me ,,;ght Cj ;n'pallie" G)'mbo= ,.

drugslOct.com, Epl<-o' , ~tc, n f Ihoo~;"ou.'$, Astu, DaIc.tr.>,d:, and Xy .... 'CL

33. B...,., cn nan o=d a fuluci~ty duly o f confidentialily, ot ~n ohlig:llion a=in[!. from a

s;mmI r.h no" , hip of r~un ant! "'>Hfid",,<-c, 10 Wils(.>Il S"",;ni, it, di"nl~, ~nd/O! n. ch.nt,'

7

m:tlchoIJct:< In keel> Olal~o:.l """i'"hl;~ infoJlnmioo Mho,,' ,I.e eight ComJ>ll lUu' mull'"c:,io,,<_

iudllding '}''''t e~lItmc~ ~IJ<J n~tute - ~onfidenti~1.

14. Yet, all tbe I ... i, o r t.hat m. tena) nOll pub!ic information, BI':\Vt:JJll.afl ,rAdcxi in the

.... :un.i"" o f ",,"eb of the CompaniC5 and oppw hi. K...."hcr to trade In l3pioor 1l0<1 &:>g:II",­

Il r:>.y.,.", .. n ."",perl QVO;' UOO,OOO in resulting profils. Hi, Bromer reap"" we.r $1,800 in profi!!

fUlm trading on ill~8"llil'! (rom Brnve!lIl""

35, ll~",vc""t~n knew (or rakk",ly tli"~.~'7.I"I.le<1) (j,~l Wil >i<>" S..,mrni'~ mfmmation "bt;",

the ejght Compuliclo' impendmg tnuWtcr"" lJI ~s outeWl .. n d no0l'ubllc.

36. BtII'"Ulooll k,,,cw (Of ~ d isreW'" kd. rue had milOt. to know) that he h..:l

ohl:oincd lhe .inform ation "I}()ut the in,,,.,ndJng tntl, .. ctioos directly from hi, employer, limt hi.

eml'loyr~ w.., ",'ork;ng on th e transaction- ..,n behalf of its cli<,'ltn., ~nd thaI r.lt ~ d itll l' ",ue P",ti., tv

the tnuI .. u;on •.

37. BtlIVetm<tll knL"W (or recklNlly <.I1lir:cgo.rtkd ) mat be b..d a d uty to knt> ;nfOthUtioll

"bout the eight C<;>D"lp'. ni~' io'l>eDdmg tllUllOOcti ... U c:oofidential "".I 10 fd ... ;n f. ()n. lr.Odiog on sucl!

iniormation.

3H, BN.verm w mi."",-'<l Wibon SontJ"i ', trt aktial nOll~ublic chen! iuf<;rmaHorl for hi.

£,,, .. 01 ... 1 bendit Ead, ,ime he <:r:ldod o n ;'lIi,[" infoml.uion, Bca"l'"e[[ .. ~" bte.cI",..! his lidocury dllt;'

o f con.6denti..Jity, W" ~ duly oftru~t ~"d COtlru:Jmc~ wsmg from" . i.nil", rd~ tionship, to Wiliion

Son.ini, it>; dienl$, and / OJ: in "bc" t~' ~h .. ~holcle.(S.

:,9. \l;'h.n )j ' ~vcrtnan ,uded III Gy",IM,>tC'C, ;\, 1.''', and Eptwi and ripp""j hi, flrother to

,r .. dc ill Epicot, ",\t~t~'H i~l llcl" had b"".(\ ,.,. ken Lt. c~lIllme:Ilc •. • t~n (lct om,. f, or thc , hOle, of

Gymboree, A~t<"x, and Epicor, respectivdy

,

1I1jyITl' '<' n 'Il J DS ide. T rill!; "g. i !'_..Gymh!>!!:,

-ill. Starling in July 20) 0, tCJ><~'culatins "f (; ),mi>ntee "ud Ihin C~piml bql,~"

.j '- On ~p!C:mbcr 14, 201 0, \VlIson Son.sini began worlung fo( Gyml.OtcC ... ;lS ler,:ol

$41.01 and $+lAS.

43_ On or b.:forc 5<:pl<-moo 28. 2010, H ..... v~m"'n, by virtlle ofro, c'''plnyn>cnl 01

Wi l, ,," S<lu .;ru, ob t'llltd ti"l~ tcrul nonpublic in f"'ltnatinn about ll:liu C~p;T'~\'~ i"'p-cndirtg aC'1u:i'!iti<)n

<" f Gymbo""",.

H _ On me b<WJ. of mal infonnauon, OIL SLl'l:<:mbcr 28, 2010, Dr:weaoan purt.lu..oo ten

Gytnbnr"" a U options III ~ pL·tsoruollrnding <U;l;lJWlI_iD m. own IllIm .. l or appn,~ihl.:udy $567.'

45. On s..1'IL'ml",. 30, 2010, aftc.,. ,he close of th~ Uli ",,~urilic~ mukel., the .6",,,,d~1

" isl",,, dian the p lm",," .:by's closmg price. The vollune o f "bnc~ ,,,,J ed ,I,at dt.y WlI. J52'Y. higher

Equity c...u (Jpd. inS gr..'e d,., bll~"c' . he tiJ;lll, but not the ob~g~,j"n, UI plJrcl .... c ~ compony'. >lock. at a 5e[ prke (the -,mk~ price'') foe a "':,, ~'" pulOd of !tIDe (thm ugh "'e~I)Lrl.uon"). In 8"nero1, one buY" a ",,11 OPUOD ",hen the ~t<>"k "rice is upccl<-.l '" n<;o;:, ~nd ~Us 3 c.alI option ",,·h en Ihe stock pnu is UP,""'loo (0 foD. E,'en if Ihe Sh:IU pric~_ un<"! K-.• ,:h"", Ihe stnke pnee, th~ purd ""'I c;,J> ""II 'he ClIU opuen f<>e a pwfu u long ~~ th" n il " P i ".,n IIICIe>l!eS in v~l,,~ I",y"n'] tI\~ l',-",cha,e pn~~

9

47. Tha. d~y, IhavUl1Y.lD wId hi, (f}l ubru"e n. ll "p.;nn. fer ~1)pxwm3tdy !j4,9!13. He

",~Je illicit pwf1t~ "f ~J'ProximAtdy $4,4 17.

48. O n OCLOW 11, 20 to, fhin Cartal Ami G~·m!oortt ~n"O\'!\Ced Ihn ti. ;" C"pitol

pbnned to ~OJU;'C '..,..nboru thro"Kh:a tender offer for (ry.·",boree'~ outsl~ndiliS ~b,...c •.

49. On October 75. 2010, B:au. C.pital tum'J1C11ced:l t""der oITe. 10 '"'qune :all of

GymbolCe. (lllls Ulnr:Unr, shiue,. fhin C"pltol S11~1'C. ... ,full)' completed the tell';"'r "ffer on Novr.mb<:.t

23,1010.

BI'lIYJ;rman's I" siller Tmding in d'I'glIl.9«:,roro

50. On July 16, 2010, Iq>tC","f1 t:a tr.-a of (I.UgmOfe.cOtn :mJ W.lgw:ns tnd W ili.<cll<S ~

potential M&A l .... n'~CDOJl.

51. On J~nuM)" 7, 2011, \x'ii.on Som;n; h ~gall woIking fo.t ",uS,m.c . .:",,, os its legol

c<.ll.",.d on rlruf?!('tc.com'. impending tu.n."ctio., with 'iX'"lgt~""t'" Wili ("lI1 Sonsini u",<l • code

,\.lInt Co k.,.,p th" "<"~I oonfickntial.

52. "rom ili~1 d~I" thn.ugh ~brcb 7.3, 2011 , drugstore.coOl', ~lOC. mu.la1 n p:tt~

b~lwt:cn $1.75 and p . l!>.

53. Or> or befort J. nualy 27, 20 11, J3mveJ:man, b,· "in((c ofhis ~mploynw"t ~t W'i!.(\ll

So'Uiru, ulw~incd (na~ml nO"(luhlic ",[ormation .,nn.,c ... itlg Walgreen~' itllp""Jinlj: acqui'iMn of

'irovtnre.com.

S4. 0 " .he bQ~ of th~t ",f.\T""~\iOIl, J3!l1Yclm~" pUTCh"'cd 9,000 shal.,. of

dmgSlore,wm "' JoCk fM ~ torn l of ~pr"()"Ill ... \t ly $ 1 6,SS~ on three occQSlons ,limnS- .he ti!« 'luar!~r

oi 2011: 2,000 ,hale! 0'1 J ,,[(my 27, 2011; 2,O()O _l,n", "n M=l, 22, ~Ol I; "nti 5,IX,() ,hatt, on

tlb rcb 21, 2011.

55. 0" \b n:h 2 .. . 2011, bef()l~ 'he U.s. !oeCUlltlCS mnk"", '>re"ed, W~

10

dJ"llg'tore.wln'~ ,Ioue pcc.e open ed 113~" higher IhRI moming .h3n ti,e j)revwus <by'. c\{",ing pr; ... .'.

The, Yohml(' of ., I,~re~ u'II{lt,d th"! d~y w~. 17,303% rughcr lh ~n lhe I'rcviel\ls day's voillme,

5h. AI'i.er the ~mJ<)""ccn->cnl, UnVel:lllaU '(lId ~,O()O .,hue' of drur,ltorc,com fDr

t.ppro"i m .. tclf 130,172 o n me mortling ofMu.;h 2·1, lOll. On Marcll 28, 201 J, he sold thc

«:IDa;n;ng 1,000 shun fux " f>Pf'Oximatdy $3,81 1.

S7, In tot~l, Il rAV"n"~1l m~<k illicit J)«,tiM of appro:Xlmalely $17,127 f«)m hi., Indmg ill

d tUg< lott, com,

BaycwUIU'~ lnsidcr Ttadjn~ jll !tud Ti]Jlli:l'g on E~

58.. St:uting U1 hne Jw.e 2010, t<:J"eselluotive. of AI''''' mel Eilicor ber,an w.cU"';OIU

~buolt a 1""'oUbk tnDI~Clion h~l\"'-"t.'" ,-he ellUUelI. 01> .... US"''' 3, W'W. Ap:u: au<1 I!piw . o:ntL'I'W illto

~ confidentiality .nd ~1"~nd.ull agl'ttmellt.

59. On August 10, 2010, Wil s"" S.lIl~"li be!:"n w"ding for J-I.l'j~or a~ its leg.l colln .. ,1 in

connection with t':PICOr'S UDpcnding tr-.. nueuon wilh Af>'<.'<- Wilion SOl\5UU wed a code uaJllc III

k,""p Ihe d"") confid""ria1.

60. I'",-,n, Ih~1 date through .A.ptil I, 2011 (th~ last ,lay of .",<ling hd():Jc tl,e de.J

fi IUlO"fJC~ll1~nL). El'iool'" ,to.:., k n,,,kJ ,,-I l,riCt! bern· .. ,,, $6.41 ,,"d $I 1.33,

(,1. 011 IN bcl,tr<, t<.i:t[ch 25, 201 1 • )j.n 'crman, h I' vir~ " f hj~ ~ll)pl"~,,,,,,,,,, 1t \Vil'OIl

Sorllini, obt2lOed """"ml nOttpublic: Jnfotnt~,i(,n loom Apax's impendil\g ""'I"i..ition of EpicoL

62. ()n ,he UlOJlJltJg ot' March 23, 2011, 1ll1lvc.m~n and hl5 Brotl'e! tri.d 10 contllcl ~~ch

()thet b ~' l'llOne.be wn..,. They 'poh a[ lust oll~e fpt mote than fO\\( minule~ Approximately

t w~tll-)' ,runutes aft~r IhKr ~(,",'-cn~ tion. th~ jl"!lh~r l'ut<:hased 4(lO ,hun of I'.pi".,>< .tno(:k.

"I' proxima<t'ly twt) h"ur.i lacer, l\DlWr/Jl ~f\ ~"d I, ~ Brother spoke ag~ill loy [,"""'e fo-< ,wS;hdy OV<'f

tIu« minute;;

11

64. On M ud~ 31, 2011 ,(l '! Art,l l , 2011, liuYcrtn"n and lus 13" Otb~.r had tW(' hud

l.hone com2ct:!. J .. rc, on April I, 20 II, hi., Brothu pun:h:t",-", 63 slutes of EplOOl ~to~k.

6S. Ou i\1>ril4, 2011 , bcfmc uu~ U.s. S«\Jtirie< mark~I! op~lI~l. Apa;< ~nnoullad th3~ it

pbnn~d to ilCq,urc E picol !hwugh a lcnder offer for Hl'icoi. out'!T~ndmg 5h:.J'C>. ' ll'3t morning,

tra<.kd. that day <v.U 3,,)83~. I.igher thau th~ previous day's vu)u"''''

66. The ",""Ie nlO<Il1Dg, aftct ' he lnnouncemnn. Kn.~CfTU2I1Iiq\tidlOted bis ennn: position

67. J\ ft~.r I~Jh"g- hi, own Epico[ po~itiun, BUVero.Y.lll 'P'-' '!:c with hi. BWlher by phone

fu.r ,,,"eT four lruuU (eII. I .. :,,~ th~n twenty m;nlJtClllatu, ius Ihoth~ ... , k1 hi~ £.picer holding~ f,," a

l'rnGt of .ppro:rif1la.dy 1710.

68. On Apw II, WI I, AI"'" .:oonanellc<'<.I ~ tender olf.,r to ~C< lI'i •. e . 1I uf Epio:m'.

un May 1(i, 2011 .

1>9. By Man:h 1, 20 II > Wilson s.;,,,sin, tuod begun ","Od<ing ...nh SeaW ... ., as il! kgal

J~:>.I cOllfid en!1.1

7il ~r<>m, IhAt dal" , hWl1>'.r. Apl'il 1 !), 20 \ t , Smgo.te's stock prke 'il rl~~J fwm $12.30 to

$17.&\.

12

71 . On ru ~iolc M:u~h 1-1, 20 11, Or:we.man, by VlIl\HO of hi~ ~"""pl"ytncnt ~I Wil<nn

&,,,,; ,,;, III >taitl ed m~I~~l~1 nonpubhc ;nt()tTT ,alu,n aoom Scagate, imp"ndi~S "'tOl;I)' Inn<aoiotl wlm

S.m,Ol"g.

72. Oll ch~. bull! of Ih;$ inftlttn.uon, on M:uch 14, 20 11, 1'Ir"~".,,,.n purch ... <ed 100

sh"tl.:< of Seogatt. lI' bis Wibun :::'nmcini 401(k) ~<:COUlJt for ~pptuxitn~Id1 SI,m.

73. OJ' !-bf~h 14 ~tlt.! Mard. 16, 201 l, lhlwemm, and hi. BI()the. h~d ,,,,, ... 0.1 brief

l,hone contact •.

71. T "'" d~ys I. t..." Oll t-f:m:h HI, 2011, lh" Brodler ptJr.;b.aled 10 Sc.gate mJI optU,,,.,

75_ On March 25, 2011, BnI~ClTJWI sold the Soga ... MHu", in hl. 4(11 (k) :u:mlllll for

:.rl'1l)·~n"3 tely 11,417. lutJ lring in illicit 1"ofita o f app.wJ.imalcJy $90.

76. Ou l-hreh 29, 2011, nra~'''''UlUl p\ll ~h~""d 50 Seo.p.lC t ill OptiOllS, this tunc ill hi ~

pCl&onal I(',uling ~ecoont, for ~pproxi.lnf\tely $905.

77. On ;\p.ul4, 2Ull, fi/':lv<:. nu.n ~nd bis CroWl spok<: or IC&lII 01"'" II)" ph",,,,,

includmJ: a call ,hM "~t~..J 'Wet f()ur lim-lUtts..

78. 1.a1~1" Il~,a diy, D!av""m~n'~ H rl)th~. p,"",ch.,ed 5 Scaf:Otc uU option •.

79. 00 the mm:ll\~g of .... p,;[ (', 201 1, federal ~utho~-\tie. ~""u\ln cc<i ,Iut th~x h~d

1n:~.~d Muthew Kluger, oil ~'ton"'r at Wil ,on Soruini , on cbl'p of lipping mat"",a/nonpublk

rnfom ... noo th~t he "hl:lU.l~ from Wilson ~MnL T he C",m" is.ion IlmUlrlltlcoully annoull,,<:d

thot ,I hat.! filed ~ civil (IlfoKcm~I11 ~n;"n d>:l.ging K1ug~~ with tipping Jl)~,clU l no"p"hlic

inf"nn~ l.ion.

00. \XIii";,, the nex! [(mr hour" lluvelll' . " li'l ui,h,,,d hi. cnl.u-c p05Il:illn ill Scar::H~ (In

options un Her I ..... .

81. On "'1',111, WI I, D",v<:.tn~n ~ud his Rrot.! . ... pb~~d th lec ,eJephoJl~ G\II~ to ntle

inulhn

lJ

H? all J\pril I\, 2011, m~ BlOtl",. ]iqu,.Httd hi ••. utUc p,,,,iti,,,.. in s..:.ga l~ can oplions fOf

~ /,wlit of appro,omul" ly 'I, I ll. Aft~rwaTJ", Bt~"tm,"n ~nd hi , flwi ftcr Izied contacting u~ft

,,,her by f,ho!l~. (;C,·I·tII l lillle~. .\ hey h. d O"C ph"J.le call th~t 1:",,,,[ cighl, minmel.

81. O n A[>Til 19, 2011, befurc ,hc U.s. securitie. In:akc,~ " pened, Setg.o.to. \UlJ'Ulu,ced ItJ

ummgs fm the .hiTtl q'IU teI of 110 2011 r",c:AI yeu ~nd announced ,hal SIImsllog vrouM tcc";,,,~ a

"Iip;nific. , \t~ ~":I"i'~· !l~ke III th~ company as p~!I of ~ ,..-kl~ ·t-;l1lgmg .tutegic pattElcuhip with

~.aeat"_ Th~t day, Sellgate '~ w""k pri~" ;'lcr~~tS<',1 1% (",cr the pRviOllS day'~ deMing price, and tlle

nolu"'" of .baret traded jl"n p"d "8.m'. from tbe P='Io" s day'. volume.

I!t.\Vtrm.~Q Continues His Ins jdc r Tr4t1j,.g in the PJll!)'yjy AccquPI

84. On J "Iy :U., 20 12, P"p),nm urivt<! in the Un;",tI S l.:> teJ >tnd .. isi!ed Hl",·cmun'.

hom~ ill C~li fotni..~.

H'i. I" _ppwxima,dy &ptenili ~t 2012, l"lnnIma" directly ,IT indirc<: ,ly opened the

PUI'l"'mu Accounl (th" ..:.:mIll! in Pupyn;n'~ ru.01\I"). Th~ " mo il ",kltc.« 1swci:n ed WIm the acc"",\1

W .. OD~ thaI H"'V~'nUll D b, d ,,,,et! I.x:fOl~ 10 opeD two OthL"t hroker:ar,e 9CC01>ntl iu hi,; uwn ' l.:>mr.

ll6. On 0<:101,," "II, 2012, l\'Py";u ldl,h.: U.s, and did nc>T tcturn "Ill;] December 26.

2()U. mort. th." ~ I'"", later,

~ On D~~rmboe. 11 ,2012, "I,proxUnatciy si ~ week< a["" £'\'p)'nin had left ,he 1:.5.,

n"'Ve.lIlUln ere-,ut<!. new ana;] :uftlress using I'''pynin', (it'll name: vitaly9-1 S@)·ahuo.OOll1. "fh .

:I:lm~ day> l\"vC' lT>all dllloged Ih~ L"tna;1 ~ddress a~;~I"d ... ·;,h ,he i'upynin J\C<:<'>lml 10 the new

~. Flom 1:\,)v",,,I,,,. 2()IZ to Decc,nll<::r 2013, Ikwerm'H u'cd ,he f'Ul'~'llill Account ' I)

'.on',n= 10 trlIdc Oil ,he ha.~ of ma<eJJal, nonllublit: 111fonnlltloll 'hat he .-.huuned from WilwIl

:-i()JWnL

14

Bravcm!.a.n:l_Iusider Trading-in YM BiO!i ch:n~c.s

8') On Octob"t 1, 2(J12, WiL",u 5Qn~ini [,cl!I:ln working fOl Uil,,~d S"icn= II it; legal

cOIl1l!!d in «~Ul<:<:UOD with it~ impetliling ="cri' ~ l ",ith \'M Bios<;io;:.nQ:ll,. Wilion Sonsiw u,cd ~

code n.m" '" keep the dc~ 1 c(~lfid~tlual.

9(J. From th.u dal.O lhrrlUgh D ecc\l'oc' 11, 2012, n-r }li" !I<.icncc,' ,h.."., pnce i:'llllSo J

from $1.4910 11.8')_

9 1. 0:0 Octuber 4, 2012, (;jk"d Sdellc6 6UbmlttJ:J 3 non-b iodiog olkI 10 ~c'l,,;"e an of

Y,\I nioscien~,,~' common ,hates.

~2 On or b .. futt t\v"",nl>cr 21, 2012, tln.ermau, by ~-inue of hi. ~"'l'loy'''au ~,

\VOOon ~m~";'u, obllliocJ n'~leri3~ nonpubli<: ;nf"m,~tion CODa:JJnng 'ho pOlemiil alX)ulsirio" uf

YM Bi",ciem:el.

93. Oil Ih" b .. i , of ,hi , illfomlHion, fl:om Nm'cm~. 21, 2012 to Doccln l><:r II , WI? ..

B.,.vern",n 'L<cd th" Pupyniu Acu)um 10 porem.,c .' 27 caI.l oprio"".in YM Hi ... cio::n= for

~pp J()~imMely $J,OlO. Ht"~'-(rm:l!l placed tl:,,",c tndel from hi:< C",lif<>nli~ hom. while P"Nnin was

(H."sid •. the UI, it(~J Slates.

9,.. Ou Decan!.er 12, 2012, ~fo.., 'he l i.". seell~ n.w.el>< " rencU. Gilud Sci.w.:=

~""u"n~cd II! plonnni ~<quiSlUOD o f YM Hiu.d""l<=el. 1n.n ",,,m ing, VM Biosci,",,=' u...n: price

opened 7~/. highet than the prev;uu, d~y'< clO$lllg plit~. The ,·olnme of sh~le, t", ded t,h~, diy wa.

9..1(11% bighe. (h~n the p re"';"u, ,obt"" ~·oJum._

'l.~. uteI that ,b, Qnd the """" d~r, H", .. ~'tIlr.m IiquJd.,~d moo l'up}"'Un Accoum', ~n ti",

p'"it;on l!l Thl: nlo.<cicn~c. fOI appwx,tn~tdy " 2.630, 11", illki, I'tO rllll h om ,h.", tratln w .. ..,~

~pl't()"!!lla,dy $9,(,21 . n".v~nn:U\ allai" l' b ced thele tr~lk" [tom hi. Califollli. 11On". ,""h,lo I'upyniu

....... oulSltle ,I>e lhutcd S"u ....

IS

Bao.wunn,'5.!llsid!:l Tn!!ling ill Ivi1s:x

%. In May 2013, ,\ stex cepccscnntivel stlu'!e,J ~Qntacting "entin <:ompan;eo til lolicit

the';. mleleSI in ~c9uiting ASIa.

97. OnJuly 2, 2013, WiI.Ofl $Qllslru beg:>n w.,.krog for Anu IS it. lcg~l CO\lniel on it.

pOle:ntitl aC9uisition by another company. Wilson &l1l~in; med a code nRID~ to k~ep the <l~

confidenri~l.

98. F',Olll that d"lc lluoogh Sq>lem\.>f;.J, 20]3, ASIa's "vc;k p rice lOnged 0 00'114.43 10

99. III August 2013, Otsuka $ubmi,rcd . n iniri.oJ offe r to KqIW'e. :ill of AlItClt's

O\1ISf<lndtng ah.' ... ." o f commOQ I tOCk. ASia "'jet ted th., initial off", bll t cuntinued negoW nOfl.

with Ot.uh.

tOO. On or before AuguSI26, 2013, Bno.verm:m, by v;ttUC nf hii employment 0' Wilson

SC .... .rni, obtllium IDII!erial nonpublic ;ofomutiol1 COflCo:J:I1ing the polmtW wquiojrion of ASIa.

101. On the ba"~ of that informo.ti.ott, Br:l.vcrm<UI m ed the Pupynin Acconnll0 pun:h"",

applOximardy 890 A.lex c~ll options between August 26 and s.,ptetnhCI 5, 2013 fOI tpplo~ im,,!ely

126,903.

102 On Augn.! 28 alld Augml 29, 2013, B.a~=an sold 20() of Ih.,.., coD opIJDn. {OJ: a

profit of o.l"f'.mtimRlely $12,770.

103. 011 S<l'li:mber 4, 2013, pres.< Iq>OrnI ciKwat<;J abnU I AD unmin~BI J~".] i.>clW"""

Otsuka 3Qd A~t~"-

104. That day, A",,,,,'~ $Iock pllC~ clu.cJ AI ' B.27, 23.8% Iugl"" Ih~n Ih~ preVlOl'1 Jay'~

clo"~ of SIi .6fI. "{he volume or shnles traded thO! Jay w:u 959% high.:, ,Iml the previonl day"

..-011111,,,-

16

1O.~. '!lIe !:lme day, IlraveJlrum oo ld 40 fu'~x ~-" I J "plion< in ,h •. J .... r rn;n Acrnnnt fo. "11

illiea prufir of al'prOXllllQtcly p, l 'i l

106. On S~p'embccr -'. 2013, bdOIe 'he (; ~'i , ., ,,,--uriue, m""ket~ <'p~ncJ, Ol'ub

.no<)unc~d Its pb oned a«lu;, run n o f ,\s(eI thcI''''I!h" lender o ffer. That n"ln\;ng, ,\ s tex's.lwx

price op ened 2.4'1'. high." IM n t.he 1'rev:i<)U6 da)"~ dosmg pric ... Th" ""l"n'~ (If shM .. s ""de<! t!utl

'~~r wa' 23~-'. ~her th1n Ihe r!~')om da1'~ ,·ohlllle.

107. 1-'<1"' I hal d1y 10d the ne xt. J:.i.y, Bnvc.t1l1an 1i'lui d~t".l 650 A~tex call option' ;n lhe

Pupyrun !.<:count for ~pproXliIWt'iy $511,:>00, making an ;11;<:;[ pttl flt of ~pproximatcl y $45,527.

IOn. B".ver:m:>n plllCl--..I ""ch of the lurex ""Jc.. in the Pu pyrun lI.o::uunt f<OlD his

c..1;fomi> hC>llK while }-\,pyl1;n =. omsld •. the _ )n;ted SLIt ....

109. In tvral , Bnvtrm.o obm;ncd ~l'p.oximntdy $61 ,Hi!;n proCHS &om hi, ill~!\.1 A. tex

trlId.~ in th e PUl'ytlln Account.

110. 011 Sept"mb~. I:\, 2013. O~UAA col1" rlCuccd a ~ndet "ffef, «) :U:'l.u;re all of 1\srex',

" u tstanding shau& Ot.,,,h 51ICCCSSfuIJy C<)ml'!cfcd the t=del offci ul1 ()~lI\ber I I, 2013.

111. Afterwards, nun-.nn~n ;n;li~led th.c .... wi,e IrAnsfer<; from Ihe I\,pyn;n Acwunt to ~

lh" k of Ameti.c~ ~CCOUIlt ~""()"i~l,,d wlth p\'py!,;n: t.wo ,nn,fero toraling $529 on OClober 19, 201 3,

~",-l. . tran.~[ 0£ $3,500 on O ctober H, 2013.

B(",lYcrnl~ o.'l! l us id!'( Tljlliing iIlJ>Uk:tJr'ACk

112. 0" Sepl~mbo.:f 2.::1, 2013, WIlKOn Sun~;n; I>cg:m workmg for O,,,lcf-L'ol11 ~ ilSlq}'l1

"oun.,d on It, =pendmg tt~n"action "'Hh D"alcr lr.lck. Wilson s."""l,!,j ,,, ,,,I ~ cod. nam._ to h ep

the de~l oo11i;denl;,I ,

113. F ..... m Ii,,-! dat .. th.rough lk=mbu 19. 2013, lk aJel1nclt', tha~ poet' wu b l.

ber",.,cn $37.17 ~ud $-13.34.

17

11 4. 0 " ()1" hcf.-:.tt n.c~mber S, 2013, B,~v~ [Jnall, hr ~in.uc of rus ~mploymc" t at \'\Tllson

Jc .l~r.oom.

115. Un the basis of that irlwrnulion, O'.V"lblOn ,,"<;cd d", Pupynin I .. ,count to por"hue

1,062 Deakll"'~~ a U option' fot "f'P.oxim~teJy P2.300 from ~r 5 to Ik"'L"fJ1b", 13,2013.

116. On December 19, 20B, 3fter dIe clo." of ,i,e "C.5. ' ecuria.:, m:.orkct~, De2krlIad .

~nllou,,~~J it, ph nned :I.e,!"i,iti"" of Deakr.CQln.

117. '[be o.ext n'l(,rnllg, as a =ult of thL~ :UlDounoemcnt. n " ak llrll.d;', ,hare poce

" 1>Cited 7.7% high'" th.n the previous dRY's dolling price. Th" , ... ~Jing volume of the ~to<:k du, <by

W:IS 3,017,685 ,hares, .... luGh w~, 834% higher than the pttyiou.. thr', volume.

118. uter the , ~n1 ~ d~y, BrJvtml.n JlquiJ"tcd th e Pupyrun Acco .. m,'~ enwe pomtion in

Dnlcttrack call opti<.> rI < for opproxi.nutdy $13H.~3 J, resulting ;0 illi cit P"ofil~ of approxim~td ~

SI ()(,.O~ I .

119. S",vennao pho:d ,,: .. :h of the DeaJertlll"k lr":Ides ill the I'uprnin Accounl from ru.

(;~lif!)fni" h"rne .... Iule )'upynin wo.. mmwe the I; niLed SI..1I=

' 120. 0 " l)ecem~r 21, 2013, the neXt d«y,11mvctman J;'c~tly Ot inclicectiy initi~tcd a wire

ccuuf.,r j" !:h,' ~n-'''U(l t of $6,870 to a Bank of lur.e';<;:t :oemanl ~ssochted ... i th Pupynin. In order to

le<junt thi. • ..-ire tJan, (et, H ... ~=nan a~1 rhe in= ' from s." ,\br~'", C;:IHorru.. wbile

PLll'ynin wos Ollr,j,k fhe Uniled ST~Ta.

.!!rl!Y~_nn ~1I'5 Iu.~idcr Ttju!ing ill X)'ral!:x

121 . On Oetobt:t: 29, 201 .>, Wihon SOI1~ini I"'K'" WOl'kinr,- for S~~I!\~t"~. il' legal coufl i-CI

ou it. impending tJafl"",:riu" ",ilh Xrr.a{.,~ Wil,,,,, &oll •• iru u.al a c",1t: n~n'" ,0 keep til" dul

t.nll f,d<"fIuai

"

122. FlO.m tlut d"-t<· thtough [)ecem~r 20, 2013, XYlOtc;;', 0t<xk pnn, traded bctui""n

$9.94 and $12.00.

123. Oil ",- I ,ef, ltc I leecmher 17, 2013, Ih-avermrul by virt"e ,)1' hi" cmpl"ymcnl: , .. Wilson

Sonsini, obt'J;ncd mal'''rial, nnnl'lLblic inform~[joll cOIlc~rning S,"lgak', irnp~nding acqlLi'itinn of

Xymtex.

124. On [he basis of that infmmation, Ilr'" v~t1n~n ""cd lh~ Pnrynin ACCOUll[ to purchase

943 XyrAl~'- c~ll ul'uom for appw.x,illl'olldy $38,171 [toll\ DCGcmkr 17 to December 20, 2013.

125. On Dec~Jnb«x 23, 2013, hefoTe th~ opening of the 'C.S. ,ecuritk. market,. &"g~t~

announced it, planned ~c'lui,ition of X y",> ",,,. As a result of thi, ru1 [Joune"",,,,'''t, XyNI~x'" ,ha1"C

price opu)~d th~t morning 26.9% higher th~n lh~ pT~";io\l" .1",.-, dosing ptice. The trading volume.

of I~c stock that day w~s 7,073% high~.r lhan the prc,,-ioll' .:Ly\ volume.

126. Starting lat~t that mom;"g and continuing early that afl~.rIloon, Braverman Jj'l"id~t"d

the I\lpyrun Account'" ~nL;tC lX)"i,;nn in X),rate", call option, for ~ppmxilTlatd)' $1 42,5S2.

127. Btaverman plac~d each of lhe X~""I~x Ir",u", in rhe Pupy"in Account [rom his

Cali[onua home willie I'up),,,in \V'IS olln;de the lhuted Slales.

128. In het, whe" Br,>,'cr"'~nliq\lidaled IllS remai n;"g XyNkx p<-"ition;n the Pl'i'yn in

Acnmnt on DccL'tnbu 26, 2013, I'upynin was flying fn>tn I .nndon', HC~lhww Airpon [() S011

Fr~ncisc() jmenlational Aitp<)lt. Pup)"n; n' , !i:n . hOllr flight landed more. d,an four hOll,," aft~x

Ilmve:man had fully li'lLlid>lted the X)'c~I.CX call options in lh. Pupym[J Acn\u1J!.

12~. In i'obl, fira,'e.rman profited by appw~;I:"~kl)' $104':;H2 from hi, fudc" in Xy",>,,,,,

,,~II "1'1;0""

Braynman Tran~J<;.!:sJ-"Sid<::: Tradinp Pmce c: d~ to Pull}'llin

L10. On Jou",,,}" :10, 2014, f'ul'rn;n left th~ U.S.

19

131. Six ,b:", i~l.cr, BrNerman dire.ctly or indir~ctl)' initi~t"d a wir~ il-"ndct 0£$2)00 from

tn~ Pupy"';" Au:ount. to ~ B~nk of America account ",,,,,j,,t,,d ""i,h Pllpynin. On february 20,

2011, J-l ,~vnm"n di,-cctly or indirectly initi~t.d a ",ci(~ w.n,f~t of $7 ,Of~) tmm .. he Pupynin Account

to tn,' ",Ino H~n k or Amellca account.

1:12. In July 2014, Ilraverm.n directly or inJir~cLI)' \<'lred ovcr $2(',000 from me PupYIJin

Acmnnt. 1.0 a b~,llk account in Rig., l .atvla

133. Ou August Ii, 2011, Il r~ vCrlu~n directly 01 indirr.ctly llutiated " wire tnm,£er of

$5,000 from the Pupyui!) ,.I,ccvunt. t()" Bank of .Am..rica account a"o,jJ<t~d ",.jth Pupynin.

FIRST CJ AIM FOR R~l,IEJ.: Violatio1l8 ofS~ctioll lO(b) uflhe Exch;ulgC Act "-nd Rul~ lOh-5 Th~r~lUld~r

(Against Dcfcnd<Lnt Btav~t1nan)

134. P~ragraph, J through 133 ar~ te"lle~d and reinc01pomted by refer~nce a, though

fully set forth hw:in.

C(jml'~nic, ' impending tJ:msaction, wa" m'llcrial and nonpublic.

136. ';:t;'il;;oJ) Y.lo,ini tt~~l:ecl 'he infomlation a, conficientiul, includi(lg th ".mgh poiici""

and pmC"duH:< Jc'igtwd w prot. ct such information one! tv prohibit irs nnl'ioycc" [rom lrading on

'tL~h inrOrtIlallon.

137. Brav",m~f\ kf\~W (01' rocklc,gJy djotegarded) tl,.t th~ infolm.tiOf) wa, m~t",i~1 ~od

nonpublk.

I.'>H. B1'" ~etmall knew (or l eckl<"dy Ji,"c8~rdcJ) Ih"l l,e owed ~ (jdllci~ry duty, 01 an

oblig,l11011 arising from ~ ,inwa( ,dotion,hip of tms l >.nd confidencr, to \\?i1son Son,ini, its clients.

and/or its client, ' shateholdct:; to k~ep I.h~ infonnation confid.lltial.nd refrain from trading on it

Brothn to tr"d" on I wo ,,[ Ihem, on [he basi, of ,he m~telN I, """puhlic i" fonTlation he "hlOinccl or

20

mi,,"ppmpriatcd ftom \I'/ilson Son"ini. He did go for a personal be:ndit. Ily dOl1lg ,0. B!aVClman

breoched his fid"ctity dnty, or other obligaLion ~rismg from ~ smllia< relationship of trllS[ ~nd

confidenc~, [0 \'('ihon Som.illi , it, cliell~', and! or It' client" ,har~holde!3,

140. Dy virtue of the foregoing, Ilrnv~llllan. in connectio1l with the pllrcllaS-e 0< sal •. of

securities, by th~ m e of any m e.an" or instnl1n.nt~liry of int~r'tate co1nmerc~ or of th~ mail" at of

any facility of my national , ecurities ~"ch.nge, din,nl)" or imlirectly: (~) employ •. d d •. vices, ,d,eme,

nCC""~l")" in oruet to make th~ ,;t~tcmtnts tnaJ~, in the light of the cltCL.ltnM:J.tlCe,; unue," which they

were made, not misleading; or (c) cnglged in aCl', I'racLic~s or cnlmes of bllsmc.s which '''I''''r'>lCd or

would have operat •. d as a fm\1d or d~.ceit upon 1'=0"".

Hl. By reason vf the conduct d~'"ti)wd ill thi, (ompbinr, }\{~v"tm"n di,.nly or

U.S,c. § 78j(b)] and Ruk IOb-5 thetellIlder [17 C.PR § 24O.10b-5].

SECOND CLAIM fOR, RELlEr

ViobtiollS of Section 14(~) of the Exehallg~ Act and Rule 14~-3 therellnd~t (Again~t Defendant Aravcnn"-n)

I 42. Pa1"llg1"llph, 1 thwugh 141 ~1" tc~llcgcJ ~nJ rcinU)rpor~tcJ b)' tef",""n",:, "" though

fully &et [Otl], herein.

143. B!av~Illla11 obt.ined mat~Iial 110npublic iuformation fwm his ~mploy~r, 1\);,'U3011

144. f\n"icml:m kncw or haJ reason 1.0 know lha .. hc hod o[,t~ineJ the inforl11~ti"n about

these trmsaCrlon, directly fl'Offi \"l7ilion Sonsmi, th~, \"VilS011 SOnslru was wotking 011 the lrm'~CLi()n,;

011 ~h,lf of its cli~11ts. ~nd th.t it, client' wer •. parti~, to the transactions,

'1<>5. 13l""".Im,,, k""",' or h,d Iea,vn to JUJow tbot \';";1>00 Svnsllli's mfollnation abo\1t th •.

21

146, Ilrnverman traded 111 the securities of Gymbot~~, I:'.picor, and Am,,, after ~Ub~t>l11tial

steps llild been taken to commence tender offets for th~ sh~tc, of ca~h j"ue.t and bdutc the tender

offen had ~en publicly announced.

147, After substantial steps had been taken to commence a tendct offet for Fpicor's

shares and ~fore the tend~t uffe.r had been publicly :l11nOUnccd, Bnrvcrman ,,1,0 tipped hi, Brother

to trade in Epicor ,ecuritics undet drcumstanccs in which it was reawnably foresuable that his

BtothelC would purchase and selll-;:picor .,ecuritie •.

148. By reason of the conduct described in tlill; Complaint, Bnvetman violated and,

unless enjoined will again violate, :ketion 14(e) of the Excbang<' Act [15 U.S.c. § 78n(e)J..nd Rule

14e-3 the[eund~J: [17 C.ER. ,§ 240.14e-3J_

THIRD CI iUM FOR REUEF Unjust Enrichment

(Against RelieIDefendant Pupynin)

149. l'aragrapb" 1 through 148 are t eillegcd and tc1ncurpomted by reference, "" thuugh

150. Braverman direc tly or indirectly e,tablished the Pupynin Account in Pupynin'. name

and u..,d that account to execute illegallOsid~J: trade, in YM Himciencc., As"",,,, Dealertmck, and

Xyrate:x ,

151. As the sole oWller of the Pupynlll Account, I\lPyrun recelved :md currendy holds

proceeds of the unlawful trades that Brave~man executed in that ~cwunt. In .d,htion, Bnoverma11

tramferred some of the proceeds of the ilteg,,1 t!Auk, from th~ Pup)min A~coul)t to bank aCCOHrt"

associa,.d wi,h Pup)"nin_

152. Pup)'nin ha, no legitimate claim to -these ill-gotten galOS.

15_1. Pup)"uin obtained the funds under Circumstance, lO which it is not just, equitable, or

comcioru.ble for him to retain the fund , . Pupynin ha , th. J:e!<xe bt-en unlU"dy enriclled.

n

WHEREFORE, the Commission !eSp"cl[~llly rCCjl1e,'L< Ihat this COUlt grant the follo,";ug

",lid'

I.

,Ent~r an Order temporarily and preliminuily freezing the asset, ofB",vcttnan and ~lpyoin;

II.

En",r an Order rC,!uil'ing Bmverman 'and Pupynin to r epatriate :ill funds Qnd ~""ctJ OOtainc.J

from the unlawful activities de.crii>ed hCtL'in th~t ~te now jrxatcd out.ide the Court's iur~,diction;

III.

Entex iUl Order Ie, training and enjoil1ing BraVenllil1l and Pnrynin from de.troying, olt~ri.ng,

or concc~ting document';

IV.

Enter a Final Judgment fi11Cilllg tllitt Braverman violated th~ 8~cutitie" 1",,,,; and rule, as

alleged agJ.in8t him h~rcin;

v.

Enter a PirulJudgment pe!tllilnently restraining md enjoining Bmvertnan and hi!; ~genls,

",,,',,-nt", Ltnployc~, ~nd attorneys and.ll person. in active concert or l'articip~tion with him who

receive ~cruo..l notice of the injunC:Non by p"twnal ';cn'icc oX othern~", from violating Section l 0(1,)

of the E.,change Act [1 5 U.S.c. § 78j(b)], Rule 1Ob-5 thcrel1ndct [17 CFR § 240.10b-5], s.,ction

14(~) of the Excilalll'." Act [15 USc. § 78n(e)], and Rule 14e-3 thereunder [17 C.FR § 240.14e-3],

pur,uant to Sc~tion 2 1 (<1)(1) of th~ Exchange l\ct [15 U .S,c. § 78u(d)(1)];

VI.

&:tIer an Order directin~ Br~ vetmall tu &'g<l1"gc, witn prejudgment 11lterest, all illicit Iroding

p,mfil5 O! other ill-gonen gains from thc conJuLl alleged in thi" Complaint, including illicit profit,

23

from trades made in accounts in hi. own n~me, illicit profits from trade, Illi\de;n the Pupyrun

Account, ~nd illicit profits from [fide, made by hi:s Brother in the Broth.£'s accounts, pursuant to

Section 21(d)(5) of the Exchange Act [15 U.S.c. § 78u(d)(5));

VI I.

Enter an Order directing PHpynin to disgorge, with prejll<lgment interest, aIlillicit trading

profits or other ill-gort~n gaim by which he w~" \lnju,tly enriched, including illicit profit, from

trades m~de in the Pupynin A~co\.lnt, pUX><la!lt to Section 21 (d)(5) of the nxd",ugc Act 115 L: .S.c.

§ 78u(d}(5)J;

VIII.

Enter:rn Order ditt.cting Braverman to pay ~ civil monetary penalty pun;uant to ~ction 21A

,,!"the Exchange Act [15 U.S.c. § 78u-1J; and

IX.

Gr.nting ,uch other and further relief as tbi, Court may deem just and proper.

Dated: NewYork,N=,York September 16, 2014

SHClJRIT IES AND EXCI-IANGL( COMMISSION t-'ew York Regiona] Offrce Brookfield Place 200 Vesey Sired, Suite 400 New York, New You 10281-1022 (212) 336-0116 (Kri,hnamunhy) K.(.bbnaroutthyl'@5~C_~<)Y

*Nol. ~dtn;tt.cd in I.he SD."J.Y.

24