The U.S. Securities and Exchange Commission (SEC) charged a former senior Bank of America investment banker on Friday with insider trading. The agency alleges Jason Satsky shared nonpublic information about a pending merger with a friend, Gavin Wolfe, enabling an $18.5 million profit.
Satsky served as Bank of America’s co-head of Americas power and renewable energy banking until his termination in March 2025. The SEC claims he provided Wolfe with details regarding the potential acquisition of South Jersey Industries, an energy holding company the bank was advising in late 2021.
According to the SEC, Wolfe purchased more than 2.2 million shares of South Jersey Industries at a cost of approximately $53 million. Following the February 24, 2022, announcement of an $8.1 billion buyout, the shares reportedly gained 36% in value. The SEC noted the two men, who have been friends for over 20 years, communicated several times about the acquisition, including at a college basketball game at Madison Square Garden.
Lawyers for both men have denied the allegations. Robert Anello, representing Satsky, stated his client did not provide any material nonpublic information and expects to be vindicated. Reed Brodsky, representing Wolfe, said his client acted on an "independent investment thesis" and that the SEC ignored documents supporting that position.
For the broader market, the case highlights the SEC's continued monitoring of communications between investment bankers and private fund managers. The $18.5 million profit figure translates to a gain of approximately $8.40 per share for the 2.2 million shares purchased, representing a 36% return in less than six months. The SEC's complaint details the alleged misuse of corporate perks, such as luxury box seats, as the setting for exchanging sensitive information, reinforcing the agency's focus on personal relationships in professional misconduct investigations.
The legal proceedings will now move toward a discovery phase where the "independent investment thesis" mentioned by Wolfe’s defense will be weighed against the SEC’s evidence of communication. A trial or settlement could result in the total forfeiture of the $18.5 million plus interest and additional fines. No specific trial date has been set, but the outcome will determine whether the defendants are barred from the financial industry. Bank of America confirmed that Satsky no longer works for the firm, having been terminated in March 2025.