Securities and Exchange Commission officials have charged a former Arizona employee with fraud for trades he made during his tenure at the agency.

In a May 9 filing,  the SEC complaint says David R. Humphrey, a former employee, did not get the required approval for what were prohibited options trades and that he filed forms that falsely represented his financial holdings.

The complaint also says Humphrey ignored ethics rules and engaged in a multiyear scheme to conceal trades he made for himself, his mom and a childhood friend from 2001-2009 and 2012-2014.

Zach Gubler, professor at ASU’s Sandra Day O’Connor College of Law, said lawsuits brought by both the SEC and the Department of Justice are one of the most important tools the federal government has to try to insure the integrity of financial markets and to protect the public.

“The whole idea behind this law is there’s a deterrence function it is playing — that the SEC and the DOJ is trying to send a message to other similarly situated people out there — that they need to think twice before doing something shady. And that we’re going to hold these folks accountable,” Gubler said.

Humphrey has agreed to a permanent suspension from practice as an SEC accountant and a settlement that includes a financial penalty of approximately $55,000.  Humphrey has also pleaded guilty to criminal charges from making false federal filings and is scheduled to be sentenced in August.

At the SEC, Humphrey, was employed as a staff accountant. Later, he became branch chief in the SEC division of corporation finance.

EDITOR'S NOTE: This story has been modified to correct the spelling of Zach Gubler's name.