SEC v. Certain Unknown Traders in the Securities of H.J Heinz Company (S.D.N.Y.). On February 15, 2013, the SEC announced that it obtained an emergency court order to freeze assets in a Zurich, Switzerland-based trading account that was used to obtain more than $1.7 million from trading in advance of the February 14, 2013 public announcement about the acquisition of H.J. Heinz Company. According to the SEC, before any public information was available that Berkshire Hathaway and 3G Capital had agreed to buy H.J. Heinz Company in a $28 billion deal, unknown traders bought call options the day before the public announcement. After the announcement, Heinz’s stock price rose significantly. The SEC alleges that the traders had inside information about the impending deal when they bought Heinz call options right before the announcement. The emergency court order obtained by the SEC freezes the traders’ assets and prohibits them from destroying any evidence. The SEC’s complaint charges the unknown traders with violating Section 10(b) of the Exchange Act of 1934 and Rule 10b-5 thereunder. In addition to the emergency relief, the SEC is seeking permanent injunctions, disgorgement with prejudgment interest, and civil monetary penalties.
Contributors
-
Recent Posts
- SEC Charges Microsoft Manager Brian Jorgenson and his Friend Sean Stokke with Insider Trading
- SEC Obtains Emergency Relief against Robert Helms and Janniece Kaelin in Alleged Ponzi Scheme
- SEC Charges Fifth Third Bancorp and its Former CFO Daniel Poston with Fraud for Accounting Practices during the Financial Crisis
- SEC Settles Insider Trading Case against Charles Langston III
- SEC Settles Penny Stock Case Against Curt Kramer for $1.4 Million
Archives
Categories
Meta
Other BraunHagey Blogs
-