James Cope, a Tennessee-based lawyer who served on the executive committee of the board of directors at Nashville-based Pinnacle Financial Partners was charged by the SEC with insider trading based on nonpublic information he learned about an impending merger.  The U.S. Attorney’s Office for the Middle District of Tennessee today filed a parallel criminal case against Cope.

According to the SEC’s complaint, Cope obtained more than $56,000 in ill-gotten gains by purchasing securities in Pinnacle’s acquisition target, Avenue Financial Holdings, prior to the banks’ joint public announcement later that month.  He learned confidential details about the planned merger during a board executive committee meeting on 1/5/16.  Wasting no time, Cope allegedly placed his first order to purchase Avenue Financial stock while the meeting was still going on.  He then placed 4 more orders within an hour after the meeting ended.  Cope resigned from Pinnacle’s board in April.