Hugh Hefner's son-in-law settles charges arising from Playboy stock trades

Hugh Hefner's son-in-law settles charges arising from Playboy stock trades
Marovitz allegedly relied on inside info when trading shares in his own brokerage accounts; said to have lost 'substantial sums of money'
DEC 13, 2010
allegations of insider trading in Playboy stock, agreeing to resolve a lawsuit by the U.S. Securities and Exchange Commission for $168,352. William A. Marovitz, who is married to former Playboy Enterprises Inc. Chief Executive Officer Christie Hefner, made $100,952 on the trades, according to the SEC complaint filed today in federal court in Chicago. “Despite instructions from his wife that he should not trade in shares of Playboy and a warning from the general counsel of Playboy about his buying or selling Playboy stock, Marovitz bought and sold shares of Playboy in his own brokerage accounts between 2004 and 2009,” the SEC said. An attorney and former Illinois state senator, Marovitz, 66, has been married to Hefner since 1995, according to the complaint. Hefner led Chicago-based Playboy from 1988 to 2009. Before her departure, Playboy had been negotiating its possible sale to New York-based Iconix Brand Group Inc. Hefner met with Iconix CEO Neil Cole in October and December 2008 and continued to represent Playboy in the talks after stepping down, the SEC alleged. Non-Public Information During that time, Marovitz bought Playboy stock after obtaining non-public information about the Iconix negotiations from his wife, according to the complaint. Sale negotiations broke off in December 2009 and the deal was never consummated. “Mr. Marovitz has no comment on the complaint or the settlement agreement,” his attorney, Jim Streicker of Chicago, said in a telephone interview. “He lost substantial sums of money on his investments in Playboy over the years,” he said. Marovitz's trades were based on confidential information that he misappropriated from Hefner, who was the CEO when most of the illegal trades were made, the SEC said in a press statement. Playboy founder Hugh Hefner led a $207 million deal that took the 58-year-old magazine publisher private in March. While Hefner's husband didn't admit or deny the SEC's allegations, he consented to a court order barring him from further violation of the SEC's regulations, according to the commission's statement. The settlement is still subject to court approval.

Latest News

Modera, Simplicity announce new acquisitions in busy day for industry M&A
Modera, Simplicity announce new acquisitions in busy day for industry M&A

Two RIAs expand their geographic footprints with deals in New York's Capital Region and coastal Alabama.

Advisor moves: Ameriprise, Prospera, Raymond James land teams with $920M in assets
Advisor moves: Ameriprise, Prospera, Raymond James land teams with $920M in assets

A 27-year Merrill veteran, Florida advisors, and a trio of New Jersey advisors just moved to new platforms.

LPL Research launches 17 model portfolios, hitting $100B in AUM
LPL Research launches 17 model portfolios, hitting $100B in AUM

Broker-dealer expands its model portfolio platform with modular building block strategies designed to give advisors greater customization at scale.

Wealth Enhancement adds $592M Chicago-area RIA
Wealth Enhancement adds $592M Chicago-area RIA

The mega-RIA with roughly $160 billion in client assets remains firmly in acquisition mode amid rumors of private equity giants vying to scoop it up.

Annuity sales hit a record as war and Fed jitters redraw fixed income
Annuity sales hit a record as war and Fed jitters redraw fixed income

Record annuity demand for principal protection collides with the most hawkish Fed dissent since 2016.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income