SEC clears Newport businessman

A Newport Beach man and the Santa Ana-based company he directed have been cleared of any wrong doing, the company announced Wednesday morning.

TheU.S. Securities and Exchange Commissionin a letter dated July 19 cleared STEC, which makes computer storage devices, and its director, Mark Moshayedi, according to the SEC.

The SEC sent STEC’s attorney and Moshayedi letters notifying them that the commission found no wrongdoing in its investigation into the company.

Chief Executive and Chairman Manouchehr Moshayedi, Mark Moshayedi’s brother, faced allegations of insider trading last week. While Mark Moshayedi was cleared, the charges against Manouchehr Moshayedi remain.

The SEC alleged that Manouchehr Moshayedi, of Corona del Mar, sold millions of shares of stocks after learning a key piece of information that was unavailable to the public regarding the performance of a STEC product, making himself and Mark Moshayedi $134 million each.

If the charges prove true, Manouchehr Moshayedi may have to pay back money, penalties and fines, and could be barred from holding a major position in a publicly traded company.

— Lauren Williams

Twitter: @lawilliams30