Former Ontrak CEO Convicted in Landmark Insider Trading Case

Terren Peizer found guilty of securities fraud and insider trading, faces up to 65 years in prison

Peizer used Rule 10b5-1 plans to sell shares after learning Ontrak's largest customer would terminate its contract.
The Justice Department highlighted this case as its first insider trading prosecution based solely on trading plans.
Peizer ignored warnings from brokers and legal advisors, selling shares immediately after setting up the plans.
Ontrak's stock price plummeted over 44% following the public announcement of the contract termination.
Peizer's defense claims he acted on management advice and plans to appeal the conviction.