Former Constellation Energy engineer Casey Muggleston has been charged by the Securities and Exchange Commission with insider trading tied to a confidential nuclear restart initiative internally known as Project Tetris. The SEC alleges Muggleston used nonpublic information to generate approximately $1.4 million in illegal trading profits ahead of a major corporate announcement.
What happened
The SEC filed a civil enforcement action on June 24, 2026, in the U.S. District Court for the District of Delaware. Prosecutors say Muggleston, a former nuclear engineer and engineering manager at Constellation Energy, traded on material nonpublic information about a confidential project to potentially restart the company’s Three Mile Island nuclear plant.
Constellation internally referred to the initiative as Project Tetris. On September 20, 2024, the company announced it had entered into a 20-year power purchase agreement with Microsoft Corporation. The SEC alleges Muggleston traded in advance of that announcement, profiting from confidential knowledge about the deal.
Key facts
| Detail | Value |
|---|---|
| Defendant | Casey Muggleston, former Constellation Energy engineer |
| Alleged profits | ~$1,400,000 |
| Case number | No. 1:26-cv-00744 (D. Del.) |
| SEC Litigation Release | No. 26573 (June 24, 2026) |
| Internal project name | Project Tetris |
| Related announcement | Constellation-Microsoft 20-year power deal |
| Criminal charges | Indicted by U.S. Attorney’s Office, D. Del. |
How the scheme allegedly worked
Muggleston had access to confidential information about Project Tetris during his employment at Constellation. The SEC claims he breached his duty to the company by using that information to trade Constellation securities before the Microsoft power purchase agreement became public.
The alleged conduct spans a period where Muggleston was in a position of trust with access to material nonpublic data about one of the company’s most significant strategic initiatives. Trading ahead of the September 2024 announcement allowed him to capture gains that would not have been available to ordinary investors.
Legal charges and potential penalties
The SEC’s complaint charges Muggleston with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. The agency seeks a permanent injunction, disgorgement of ill-gotten gains with prejudgment interest, and civil penalties.
In a parallel criminal action, the U.S. Attorney’s Office for the District of Delaware announced an indictment charging Muggleston with securities fraud. The criminal case includes multiple counts tied to the same alleged conduct. All charges remain allegations at this stage.
Red flags that should have been caught
Insider trading schemes often leave traces that compliance systems can detect. Unusual trading volume in advance of major announcements, concentrated positions in a single employer’s stock, and profits tied to specific corporate events are common warning signs. Broker-dealers and compliance departments have surveillance tools designed to flag these patterns.
The Muggleston case raises questions about whether additional oversight could have identified the trading earlier. Firms with access to material nonpublic information bear responsibility for implementing and enforcing robust insider trading policies.
What affected investors can do
Investors who traded Constellation Energy securities during the relevant period may have been harmed by the alleged scheme. Market integrity depends on a level playing field, and insider trading undermines confidence in fair pricing. Affected parties may wish to consult a qualified securities attorney to review their trading history and assess potential claims.
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This article is for informational purposes and does not constitute legal advice. Every case is different, and past results do not guarantee future outcomes.
