Ontrak’s Peizer Charged by US Over Prearranged Stock Sales (2)

Ontrak Inc. Chief Executive Officer Terren Peizer was charged with criminal securities fraud by US authorities for allegedly using prearranged stock-sale plans to avoid losses on his holdings before a major customer left the health-care firm.

The insider-trading case is the first to be brought as a result of the Justice Departmentand Securities and Exchange Commission’s sweeping investigation of C-suite officials who allegedly have been gaming the prearranged programs, which are supposed to head off improper trading on inside information.

The indictment on insider-trading charges was unsealed Wednesday, the US Justice Department said in a statement. The SEC ...