Senior Executive Charged With Insider Trading

United States Attorney for the Southern District of New York, Jamie McDonald, announced today the unsealing of an Indictment charging JESUS LUIS MORELL, a senior executive at HEICO Corporation (“HEICO”), with three counts of securities fraud stemming from multiple instances of insider trading based on misappropriated financial information belonging to his employer. MORELL was presented today before U.S. District Judge Jared M. Strauss in the Southern District of Florida. “Luis Morell allegedly misappropriated confidential information obtained from his employer and used it for his personal benefit,” said U.S. Attorney Jamie McDonald. “Protecting the integrity of our financial markets is a core priority of this Office, and we will continue to keep a watchful eye over anyone who seeks to undermine the integrity of those markets.” As alleged in the Indictment unsealed today in Manhattan federal court:(1) MORELL was the President of two significant subsidiaries of HEICO and a member of the Board of Directors for a third subsidiary. HEICO maintained policies prohibiting employees from trading in HEICO stock while in possession of material nonpublic information, which policies MORELL acknowledged he understood on an annual basis. Notwithstanding MORELL’s certifications that he would abide by HEICO’s insider trading policies, on two separate occasions in 2022 and 2025, MORELL purchased Class A common stock of HEICO in advance of the public quarterly earnings release but after receiving material non-public information concerning HEICO’s actual or forecasted earnings for the quarter. Following the public release of HEICO’s quarterly earnings information—which included financial data that was the same or very similar to the data MORELL received before purchasing HEICO stock—the price of HEICO’s Class A shares rose and MORELL quickly sold all of the shares he had purchased for a significant profit. In total, MORELL made more than $1.8 million in illicit profits by trading HEICO stock based on material, nonpublic information he misappropriated from his employer. * * * MORELL, 64, of Fort Lauderdale, Florida, is charged with two counts of securities fraud, each of which carries a maximum sentence of 20 years in prison; and one count of securities fraud, which carries a maximum sentence of 25 years in prison. The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Mr. McDonald thanked the FBI. Mr. McDonald also thanked the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority. This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Special Assistant U.S. Attorney Michael S. DiBattista is in charge of the prosecution. The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty. ^ As the introductory phrase signifies, the entirety of the text of the Complaints and the description of the Complaints set forth herein constitutes only allegations and every fact described should be treated as an allegation.