SEC Eyes Brandon Charnas in Insider Trading Investigation
Brandon Charnas, the Instagram-savvy broker behind Current Real Estate Advisors, is being investigated by the Securities and Exchange Commission for possible insider trading violations.
Charnas purchased common stock and out-of-the-money call options for Office Depot in December 2020, according to an SEC application filed in Florida’s southern district. When Staples announced its bid to buy Office Depot in mid-January, Charnas began selling his shares, netting as much as $385,000.
The agency is investigating whether traders were sharing insider information in the deal and issued Charnas with a subpoena in November. The SEC announced Tuesday it had filed an enforcement action, alleging Charnas “improperly asserted his Fifth Amendment privilege and failed to comply with the document production obligations of the subpoena.”
“The staff’s investigation has uncovered that Charnas’ trading activity not only coincided with frequent communications with other traders who made significant profits by purchasing [Office Depot] options and common stock just prior to the Staples’ acquisition offer,” the SEC said, culminating in trades including one made around a Miami lunch meeting with Charnas and two traders.
The application asks a court to direct Charnas to explain why he should not provide the requested documents.
Charnas could not be immediately reached for comment.
Charnas is married to Arielle Charnas, a social media influencer who founded the fashion brand Something Navy. The struggling brand has laid off employees, closed stores and struggled to pay vendors in recent months, according to Insider.
Charnas and his partner Adam Henick lead Current Real Estate Advisors, which is active in New York and Miami.
