The Securities and Exchange Commission has charged former Constellation Energy engineer Casey Muggleston with insider trading, alleging he used confidential information about the company’s plan to restart the Three Mile Island nuclear facility to make approximately $1.48 million in unlawful trading profits. The Department of Justice has filed parallel criminal charges including securities fraud and four counts of insider trading.
What happened
Muggleston worked as an engineering manager at Constellation Energy and allegedly learned in advance about the company’s confidential plan to reopen a uranium-powered electric plant at Three Mile Island. The internal project was code-named Project Tetris. Using that material nonpublic information, he allegedly purchased call options on Constellation shares in a Delaware brokerage account, betting the stock would rise when the restart plans became public.
When Constellation publicly announced the restart plan on September 20, the stock price rose sharply to approximately $255 per share. Muggleston allegedly sold his remaining options shortly after the announcement, realizing about $1.48 million in profits. The SEC also alleges he shared information on other confidential Constellation deals through at least June 2025, after which he left the company.
Key facts
| Defendant | Casey Muggleston, former Constellation Energy engineer |
| Employer | Constellation Energy Corporation |
| SEC case | Litigation Release No. 26573, filed June 24, 2026 |
| Confidential project | Project Tetris, Three Mile Island restart |
| Trading vehicle | Call options in a Delaware brokerage account |
| Alleged profits | Approximately $1.48 million |
| Criminal charges | Securities fraud and four counts of insider trading |
How the trades allegedly unfolded
The indictment describes options concentrated in expirations for July and August, purchased in the months leading up to the September 20 public announcement. This timing suggests deliberate positioning ahead of a known catalyst, prosecutors allege. Muggleston allegedly bought call options when the stock traded well below the post-announcement price, giving the options significant appreciation potential.
Legal charges and potential penalties
The SEC’s civil complaint alleges violations of the antifraud provisions of the federal securities laws arising from trading on material nonpublic information about Project Tetris. The SEC seeks disgorgement of the $1.48 million in alleged profits, prejudgment interest, civil penalties, and injunctive relief.
Parallel criminal prosecutors also seek forfeiture of the same amount. The criminal indictment notes a theoretical maximum sentence of 105 years, though white-collar sentences are typically much lower. Each insider trading count carries substantial prison exposure under federal sentencing guidelines.
What this means for investors
Insider trading cases rarely involve direct investor losses in the same way as Ponzi schemes or unauthorized trading, but they undermine market integrity. When insiders trade on confidential information, they extract returns that should accrue to the market as a whole. The SEC’s vigorous pursuit of this case signals continued prioritization of insider trading enforcement in the energy and utilities sectors.
Common mistakes in insider trading cases
- Assuming no harm without direct losses. Investors may dismiss insider trading as a victimless crime, but it distorts price discovery and damages confidence in fair markets.
- Ignoring company policy violations. Employees who become aware of material nonpublic information should report it through proper channels rather than trading or sharing it.
- Trading during blackout periods. Many companies impose trading restrictions around earnings announcements and major project milestones. Violating these policies can trigger both civil and criminal liability.
- Failing to consult compliance counsel. Employees with questions about whether specific information is material or nonpublic should seek guidance before trading.
Regulatory context
The Muggleston case follows a series of high-profile insider trading prosecutions in the energy sector. Material nonpublic information about facility restarts, regulatory approvals, and contract awards has become a recurring theme in SEC enforcement. Companies with critical infrastructure assets should review their insider trading policies and employee training programs to reduce the risk of similar violations.
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This article is for informational purposes and does not constitute legal advice.
