The SEC just sued Hugh Hefner’s son in law for allegedly insider trading.William Marovitz, Hef’s son in law, was allegedly trading in Playboy stock illegally — allegedly trading on tips he got from his wife, the former CEO of the firm.
One of the alleged tips included a possible takeover by the company Iconix, according to CNBC.
Marotivz allegedly traded the sexy magazine’s stock in his own account from 2004-2009. And allegedly, Christie warned him not to do it.
One question here: Aren’t Senators allowed to insider trade? Too bad Marovitz served in the Illinois House of Representatives from 1974 to 1980 and the Illinois State Senate from 1980-1993. He’s accused of insider trading from 2004-2009.
Anyway, according to Dealbook, the complaint reads:
“Despite instructions from his wife that he should not trade in shares of Playboy and a warning from the general counsel of Playboy about hus buying or selling Playboy stock, Marovitz bought and sold shares of Playboy in his own brokerage accounts between 2004 and 2009 ahead of public news announcements.”
William Marovitz was accused of gaining $100,000 by trading on confidential information gleaned from his wife, according to the complaint filed Wednesday morning that is cited in Dealbook.
We’ll have more details in a moment (the story hasn’t fully come out yet).
Christie is the daughter of Hef and his first wife, Mildred Williams. Check out their wedding photo here. Christie was CEO of Playboy from 1988 until 2009, when she stepped down.
She married Marovitz, a former Illinois Senator and a real estate developer and attorney, in 1995.
Here’s what we know about him, according to a profile of him on the company website for Level-1 (he’s on the board):
- He’s a gun control violence advocate
- He’s a foodie — Marovitz is a partner in one of Chicago’s leading restaurant organisations, “Lettuce Entertain You” (run by Richard Melman)
- He lives in Chicago
- If you live there too, and like Latin American cuisine, you can help the man out and dine at one of his restaurants tonight — Through LEY, he opened the restaurant Carnivale in a building he purchased with restaurateur Jerry Kleiner
- He used to be a public school teacher in Chicago
- He was instrumental in the creation of the new White Sox Park, and the United centre for the Chicago Bulls and the Chicago Blackhawks.
- He quit the Senate in 1993
- He partnered with Bud and Bob Cataldo to purchase property in Chicago, where he brought together several major companies in consortia such as U.S. Equities, American Invesco, Magellan Properties and Near North Properties to develop the property into commercial real estate