The U.S. Securities and Exchange Commission (SEC, Wall Street regulator) said on Friday it is moving to dismiss its civil insider trading lawsuit against Terren Peizer, the former healthcare executive who was convicted by a federal jury in 2024 and later pardoned by President Donald Trump. Peizer, 65, founded Ontrak and served as its former chief executive. The Department of Justice had charged him in 2023, while the SEC filed a parallel civil action. Authorities described the matter as groundbreaking because it was the first criminal case tied to the use of a pre-arranged stock-selling program intended to help protect executives from insider trading allegations. Prosecutors said Peizer sold more than $20 million of Ontrak stock between May and August 2021 while holding material non-public information about the company’s largest customer. A jury in Los Angeles found him guilty in 2024 on two counts of insider trading and one count of securities fraud, and he was sentenced in 2025 to 3.5 years in prison before Trump pardoned him in January. Peizer was also described as a protege of Michael Milken, whom Trump pardoned in 2020 after Milken had pleaded guilty to securities fraud and served about two years in prison.