Comtech's former CEO charged with insider tradingComtech's former CEO charged with insider trading

Earlier today, at the federal courthouse in Central Islip, an indictment was unsealed charging Ken Peterman, the former Chief Executive Officer (CEO) of Comtech Telecommunications Corp. (Comtech), a publicly traded company based in Melville, New York, with insider trading and securities fraud. Peterman was arrested this morning in San Diego and is scheduled to make his initial appearance tomorrow in federal court in the Southern District of California. He will be arraigned in the Eastern District of New York at a later date.

Breon Peace, United States Attorney for the Eastern District of New York and James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrest and charges.

As alleged, Peterman was the CEO and Chairman of the Board of Directors for Comtech. In his capacity as an officer and director of the company, Peterman obtained material, non-public information concerning the company's financial performance and internal decision-making. For example, in early March 2024, Peterman received a confidential briefing from Comtech's Chief Financial Officer, during which Peterman was informed of an upcoming negative earnings release. In addition, around the same time, Peterman was informed that, based on an alleged improper relationship with a subordinate employee, Comtech's Board had resolved to terminate Peterman for cause. The indictment alleges that on March 12, 2024, shortly after learning of the negative earnings report and his impending ouster, and prior to the public release of such information, Peterman hurriedly sold and/or attempted to sell tens of thousands of shares of Comtech's stock, which he held in two brokerage accounts.

Read the full press release here.

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