Quick Facts
Overview
The U.S. Securities and Exchange Commission filed a complaint against Bruce Cameron Conway on August 7, 2025, alleging insider trading in shares of Cancer Genetics, Inc. (CGIX).
Conway, a 74-year-old Dallas resident, reportedly used material nonpublic information about an impending merger between CGIX and a private biotechnology company to purchase shares across 15 family-related accounts, generating approximately $160,000 in profits when the stock price rose 215% following the public announcement.
Details of the Case
In July 2020, Bruce Cameron Conway, an advisory client of a Texas-based investment adviser, was approached about investing in a private biotechnology company that was negotiating a merger with an unidentified NASDAQ-listed public company.
After agreeing to confidentiality terms, Conway learned the public company was Cancer Genetics, Inc. (CGIX), a Delaware-incorporated biotech firm trading under the ticker CGIX. He invested $100,000 in Private Biotech Company's convertible notes on July 22, 2020, and simultaneously began purchasing CGIX shares in his own accounts and those of family members, where he held trading authority.
These purchases occurred before the merger's public announcement on August 24, 2020, which caused CGIX's stock price to surge from $2.90 to $6.25 per share, with intraday highs of $10.39. Conway then sold shares the same day, realising profits.
The SEC alleges this conduct breached confidentiality obligations and constituted insider trading, as Conway knowingly used nonpublic merger information to trade. During the SEC's investigation, Conway invoked his Fifth Amendment rights and entered a tolling agreement extending the statute of limitations to September 30, 2025.
WORKED EXAMPLES
Personal Account Purchases
Between July 22 and August 21, 2020, Conway bought 16,500 CGIX shares in his Roth IRA account, 2,000 shares in one individual brokerage account (July 30 to August 17, 2020), and 500 shares in another individual brokerage account (August 3 to 10, 2020), totaling 19,000 shares across his personal accounts at an average price of $2.99 per share.
- This marked Conway's first-ever purchase of CGIX stock, initiated the same day he closed his $100,000 investment in Private Biotech Company.
- Impact: These trades contributed to overall profits of $160,936.22 when the stock price increased post-announcement.
Wife's Account Purchases
Conway purchased 4,950 CGIX shares in two accounts held in his wife's name, including 3,200 shares in one (July 27 to August 19, 2020) and 1,750 shares in another (July 27, 2020).
- All trades were executed by Conway, with the same IP address logging into these accounts in late July 2020.
- Impact: On August 24, 2020, he sold 700 shares from one of her accounts, part of the immediate post-announcement sales.
Daughter's Account Purchases
In three accounts under his daughter's name, Conway bought 4,200 CGIX shares: 600 shares in one (July 27 to August 6, 2020), 3,000 shares in another (July 28 to August 12, 2020), and 600 shares in a third (August 11 to 12, 2020).
- Conway had trading authority, and the purchases occurred after he learned of the merger.
- Impact: Sold 600 shares from one account on August 24, 2020, realizing gains from the 215% stock price increase.
Son's Account Purchases
Conway acquired 6,800 CGIX shares in two accounts in his son's name: 3,800 shares in one (July 23 to August 19, 2020) and 3,000 shares in another (July 28 to August 12, 2020).
- Trades aligned with the period he possessed nonpublic information.
- Impact: Sold 500 shares from one account on the announcement day, contributing to family-wide profits.
Family Trust Account Purchases
Across five trust accounts, Conway purchased 13,300 CGIX shares: 2,800 in one (July 27 to August 12, 2020), 2,800 in another (same period), 3,000 in a third (July 28 to August 12, 2020), 2,500 in a fourth (July 31 to August 21, 2020), and 2,200 in a fifth (August 3 to 14, 2020).
- Total family purchases reached 48,250 shares before the merger announcement.
- Impact: Admonished by his investment adviser upon discovery; trades breached confidentiality and led to alleged fraud.
Fines and Penalties
The total fine amount is to be determined by the court. ASIC seeks pecuniary penalties under section 1317G of the Corporations Act for contraventions of:
- Sections 912A(1)(a) and 912A(5A) (failure to provide services efficiently, honestly, and fairly).
- Sections 912DAA(1) and 912DAA(7) (failure to report reportable situations).
- Sections 1308(4) or (5) (false or misleading statements in reports).
Key Quotes
"I would love to see you invest with us." (From Investment Adviser Employee 1's email to Conway on July 15, 2020, recommending the Private Biotech Company investment.)
"I am emailing a response to agree to keep this confidential." (Conway's email response on July 15, 2020, agreeing to confidentiality terms without signing the agreement.)
"Conway admitted that he knew the identity of Private Biotech Company’s merger target before he bought CGIX shares." (From the complaint, referencing Conway's statement during a March 18, 2022 call with an SEC attorney.)
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