06/10/2025 | Press release | Distributed by Public on 06/10/2025 07:22
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 26322 / June 10, 2025
Securities and Exchange Commission v. Jack Brewer , No. 1:20-cv-06175 (S.D.N.Y. filed Aug. 6, 2020)
Court Grants Partial Summary Judgment Against Former Registered Representative
On May 30, 2025, the U.S. District Court for the Southern District of New York granted the SEC partial summary judgment against former registered representative Jack Brewer. The SEC previously charged Brewer with insider trading in the securities of COPsync, Inc., a microcap company that operated a communication network for law enforcement officers, for selling over $100,000 of COPsync stock in advance of a company announcement that caused the stock price to fall.
According to the SEC's complaint, filed on August 6, 2020, Brewer was the CEO and portfolio manager of registered investment adviser Brewer Capital Management (BCM), and the CEO, president, and 100% owner of a related consulting firm, Brewer Group Inc. Brewer allegedly obtained material, nonpublic information about COPsync's plans to do a stock offering through his work providing consulting and endorsement services to COPsync. According to the complaint, Brewer participated in the offering, and the purchase agreement contained a clause obligating him not to sell any COPsync shares before the company announced the offering to the public. Additionally, a consulting agreement with COPsync allegedly required Brewer to maintain in confidence all proprietary, non-published information concerning COPsync and not to use such information for his own benefit. Nonetheless, according to the SEC's complaint, on January 4 and 5, 2017, Brewer sold his COPsync shares before the company announced the stock offering and, as a result, profited by approximately $35,000 more than he would have had he sold his shares after COPsync issued its press release.
The SEC's complaint charged Brewer with violating, among other statutory provisions, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder in connection with his alleged insider trading. Following the close of discovery, the SEC moved for summary judgment against Brewer on this claim. On May 30, 2025, the Court issued an opinion providing its reasoning for granting the SEC's motion in its entirety, finding, among other things, that the information Brewer obtained about the COPsync offering was material and non-public, and that Brewer breached the duty of confidentiality he owed to the company.
The SEC's litigation is being led by Todd Brody, Bennett Ellenbogen, and Lindsay S. Moilanen, under the supervision of Sheldon L. Pollock and Jack Kaufman, all of the SEC's New York Regional Office.