[ by Howard Haykin ] A sales manager at Primary Global Research LLC (“PGR”) was charged for his role in the insider trading scheme addressed in the case, SEC v. Longoria et al. The Respondent. In the current SEC civil law proceedings, Respondent James Fleishman, 42, from at least 2008 through 2010, held Series 7 and 63 licenses while registered with a broker-dealer affiliate of PGR during the relevant time period.  As was established in prior legal actions (see below), it was alleged that, in connection with the purchase or sale of securities, Fleishman knew, recklessly disregarded, or should have known, that material nonpublic information he received from consultants at PGR was disclosed or misappropriated in breach of a fiduciary duty, or similar relationship of trust and confidence. It was further alleged that Fleishman facilitated the transfer of the material nonpublic information to hedge fund clients of PGR and/or passed the information directly to PGR clients himself, and that certain hedge fund clients of PGR traded based on the material nonpublic information. Prior Legal Actions Involving Fleishman. On 5/7/12 , a final judgment was entered by consent against the sales manager, who is the respondent in the current SEC civil action, permanently enjoining him from future violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, in the civil action entitled SEC v. Longoria et al., Civil Action No. 11-CV-0753 (S.D.N.Y.). On 9/20/11, Fleishman was convicted of one count of conspiracy to commit securities fraud and one count of conspiracy to commit wire fraud in violation of Title 18 United States Code, Sections 371 and 1349, before the United States District Court for the Southern District of New York, in United States v. James Fleishman, 11-cr-00032 (JSR).  The counts of the indictment on which Fleishman was convicted alleged, inter alia, that Fleishman, and others, participated in a scheme to defraud public companies of material nonpublic information. The indictment alleged that Fleishman did so by obtaining material nonpublic information and transmitting it directly to clients of PGR, and by facilitating meetings, phone calls, and other communications between employees of public companies and PGR clients knowing that material nonpublic information would be divulged. The indictment alleged that Fleishman understood that the material nonpublic information would be used for purposes of executing and causing others to execute trades in the securities of public companies. He currently is incarcerated in Colorado. SEC Sanctions. In the litigation proceeding, the SEC entered into a settlement with James Fleishman, which includes the following agreed upon sanctions - in addition to the sanctions from prior legal actions:  Fleishman is barred from the industry, and is barred from participating in any offering of a penny stock, including: acting as a promoter, finder, consultant, agent or other person who engages in activities with a broker, dealer or issuer for purposes of the issuance or trading in any penny stock, or inducing or attempting to induce the purchase or sale of any penny stock.  No monetary sanctions were levied at this time. For further details, go to:  [SEC Litigation Release, 6/13/12].