Overview

• 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.