Investigation into South Jersey Acquisition Information Leak Expands to Bank of America Advisory Issues

Allegations of insider information leaks have emerged regarding the $8.1 billion acquisition deal of South Jersey Industries (SJI). The Manhattan federal prosecutors are investigating whether Jason Satsky, the former global head of power, utilities, and energy infrastructure investment banking at Bank of America, leaked transaction information to external parties before the announcement of the SJI acquisition. SJI announced on February 24, 2022, that it would be acquired for $36.00 per share by an infrastructure investments fund, with the deal completed on February 1, 2023. On the same day, SJI requested the delisting process from the New York Stock Exchange. This allegation is related to the advisory group's information management system, and if unofficial information leaks occur, they could be subject to criminal and civil enforcement. Bank of America prohibits trading or transmitting material nonpublic information under its insider trading policy. Reports suggest that the SEC has charged Satsky with insider trading, although this has not been confirmed in official documents. This case could serve as an opportunity to assess the effectiveness of internal controls at financial firms.