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Bruce Conway et al. (Release No. LR-25585; Dec. 2, 2022)

Litigation Release No. 25585 / December 2, 2022

Securities and Exchange Commission v. Bruce Conway et al., No. 22-cv-03118 (D. Colo. filed December 2, 2022)

The Securities and Exchange Commission announced that it filed a subpoena enforcement action against three Texas residents-Bruce Conway, Elizabeth Conway, and Merritt Conway, for failing to appear for testimony and/or produce documents pursuant to SEC investigative subpoenas; the filed action seeks an order directing them to comply with the subpoenas.

According to the application and supporting papers, filed in the U.S. District Court for the District of Colorado, the SEC is investigating potential insider trading in the securities of Cancer Genetics, Inc. The SEC’s application states that it is seeking documents from Bruce Conway, Elizabeth Conway, and Merritt Conway, related to trading in Cancer Genetics securities in their accounts. The SEC’s application further indicates that it seeks Bruce Conway’s testimony to inquire about, among other things, his trading in Cancer Genetics securities in the month before and immediately following a merger announcement.

On March 16, 2022, and July 8, 2022, the SEC issued subpoenas for documents. On June 27, 2022, the SEC issued a subpoena for Bruce Conway’s testimony, which was scheduled for July 22, 2022. According to the filing, despite repeated attempts to secure compliance with the subpoenas, neither Merritt Conway nor Elizabeth Conway has produced any documents, and Bruce Conway produced only a few documents and did not appear for testimony.

The SEC’s application seeks an order from the court directing Bruce Conway, Elizabeth Conway, and Merritt Conway to comply with the subpoenas.

The SEC is continuing its fact-finding investigation and, to date, has not concluded that any individual or entity has violated the federal securities laws.