The US Securities and Exchange Commission has accused former senior Bank of America investment banker Jason Satsky of leaking confidential information about a pending energy-sector takeover to a longtime friend, creating a fresh compliance test around how financial institutions protect market-moving deal information.
Reuters reports that Satsky allegedly tipped Gavin Wolfe, a former colleague and friend of more than 20 years, about Bank of America client South Jersey Industries’ potential acquisition, enabling Wolfe to generate $18.5 million in alleged illegal profit.
Bloomberg shares that the SEC sued both Satsky and Wolfe, alleging that confidential information about a major acquisition was passed between them while they attended a college basketball game at Madison Square Garden on November 9, 2021.
A $53 Million Bet Before an $8.1 Billion Takeover
The scale of Wolfe’s trading is central to the SEC’s case.
According to Reuters, Wolfe bought more than 2.2 million South Jersey Industries shares worth about $53 million before the transaction became public. After the company announced its $8.1 billion buyout on February 24, 2022, the position generated a 36% gain, the regulator alleges.
Bloomberg describes Satsky as the former co-head of Bank of America’s energy and power infrastructure banking team and says the alleged tip concerned a major acquisition proposal involving South Jersey Industries. The SEC claims the information reached Wolfe months before the deal announcement, giving him an opportunity to trade ahead of the market.
The Alleged Leak Came From Inside the Deal Team
For investment banks and investors, the case is significant because the information at issue allegedly originated inside an advisory relationship.
Reuters says Bank of America was advising South Jersey Industries on the potential acquisition when Satsky allegedly disclosed the confidential information. Satsky and Wolfe had previously worked together at Credit Suisse before both joining Bank of America in 2012.
Bloomberg reports that Satsky remained a senior member of Bank of America’s energy and power infrastructure banking operation until March 2025, underscoring how closely the alleged conduct sat to a business where bankers routinely handle confidential transaction information.
That makes the case relevant beyond one alleged tip. For financial institutions, market-sensitive information is effectively part of their operational infrastructure. Access controls, employee monitoring and compliance processes need to protect not just databases, but the human networks through which deal information moves.
Both Men Deny the SEC’s Allegations
Satsky is contesting the case.
His lawyer Robert Anello told Reuters that Satsky “strongly denies” the allegations and maintains that he did not give Wolfe or anyone else material nonpublic information regarding South Jersey Industries. Wolfe’s attorney Reed Brodsky also “categorically denies” the claims and said Wolfe’s trades reflected an independent investment thesis.
The SEC is seeking to recover Wolfe’s alleged gains and pursue civil penalties and officer-and-director bans against the defendants. Bank of America itself has not been accused of wrongdoing and confirmed that Satsky no longer works at the firm.
For banks, private-equity firms and other organizations built around confidential deal flow, the broader lesson is structural: sophisticated financial institutions can invest heavily in information systems, but their controls are only as strong as the governance around the people trusted with the most valuable information.
