Exec pays $1.4 million to settle trading charges

HARTFORD, Conn. (AP) — Federal securities regulators say an investment industry executive has paid $1.4 million to settle insider trading charges.

The Securities and Exchange Commission said Friday that I. Joseph Massoud, who founded investment advisory firm Compass Group Management, gained access to nonpublic information at an Internet site where bidding companies could learn more about the financial condition of Patriot Capital Funding Group before its sale.

The SEC said the Westport, Conn., man purchased shares soon after Compass Group gained access to the confidential information. Regulators say Patriot Capital's share price more than doubled after a merger was publicly announced, and Massoud realized more than $676,000 in illegal profit.

His lawyer said in an email that Massoud is pleased to resolve what he called a personal trading matter.

A judge must approve the agreement.