There is legal recourse provided the shares sold were not done so via the usual SEC-approved brokerage facilities. In short, if he sold shares himself without the transactions being properly carried out and recorded under the watchful eye of the SEC---then yes! He could be fined heavily and be censored for life---unable to participate in any activity involving publicly traded companies and their related business.
If he is a certified and licensed broker, then he's probably safe. If he is not a licensed broker, then he could be in serious trouble.
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