SEC v. Lawrence F. Cluff, Jr., Roger E. Shaoul, and James Shaoul (insider trading, 2017)

Settled

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In September 2017 the SEC amended its Mobileye complaint to add James Shaoul as an alleged original tipper, saying he passed news of Intel's deal to his brother Roger, who tipped Lawrence Cluff, with profits above $925,000. On December 17, 2019 the court entered consent judgments against Roger and James Shaoul, with about $5.07 million in penalties; we did not find the outcome for Cluff.

The record

What was ordered

Civil penalty

$5.1m

Disgorgement

$925k

Prejudgment interest

$3.1k

Total relief

$6m

Alleged gain

—

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars.

What is alleged to have happened

The amended complaint alleged that James Shaoul, whose clinic treated a Mobileye director and his wife, learned of the pending Intel tender offer and told his brother Roger E. Shaoul, with detailed instructions on which options to buy. Roger allegedly told Lawrence F. Cluff, Jr., and all the suspicious trading took place in two accounts in Cluff's name. The SEC charged the three under Sections 10(b) and 14(e).

Outcome: SEC release LR-24698 (December 23, 2019), reporting on the consolidated case SEC v. Waldman, says the Southern District of New York entered final judgments on consent against James and Roger Shaoul on December 17, 2019. Both are enjoined from antifraud and tender offer violations. Roger Shaoul was ordered to pay disgorgement of $925,436, prejudgment interest of $3,143.95 and a civil penalty of $925,436, and James Shaoul a civil penalty of $4,145,982; the judgment itself says they neither admitted nor denied the allegations. The money fields sum the two men. This outcome covers the Shaoul brothers only. The release does not mention Cluff, and we did not find or check the outcome of the claims against him, so the matter may not be fully resolved.

What technique is this, and how does it work?

This action is tagged with one technique in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.

• Insider trading — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

1. 2017-09-13 Litigation release published
2. 2019-12-17 Consent final judgments entered against Roger and James Shaoul (S.D.N.Y.)

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• SEC litigation release
• SEC litigation release LR-24698 (Shaoul final judgments)
• Final judgment as to Roger and James Shaoul (S.D.N.Y., December 17, 2019)

The linked release is a work of the United States government and is not subject to copyright. Our summary and narrative above are our own writing.

Same matter

The library links these 2 records because they appear to concern one matter: the same lead defendant, an overlapping technique tag and close filing dates, or a shared court docket or a release that cites the other. Records are listed by date filed.

This grouping is the library's, made by matching names, techniques, dates and citations when the site is built. It is not the regulator's or a court's determination that the records are one case, and it errs towards missing a link rather than making a false one.

Related actions

Other actions in the library sharing at least one technique tag with this one.

Record added September 10, 2026. submit a correction.