U.S. regulators allege insider trading ahead of Heinz deal, freezes account with $1.7M gains
By The Associated Press - Saturday, February 16, 2013 - 0 Comments
WASHINGTON – U.S. federal regulators have alleged that a brokerage account in Switzerland was…
WASHINGTON – U.S. federal regulators have alleged that a brokerage account in Switzerland was used for illegal insider trading ahead of the H.J. Heinz acquisition.
The Securities and Exchange Commission obtained a court order Friday to freeze the account and prevent the assets from being moved.
The account was used for trades placed Wednesday that netted $1.7 million after the deal was announced. The SEC says it doesn’t know the identity of the traders but said they “took risky bets” that Heinz’s stock price would increase.
