U.S. alleges insider trading in eBay deal
The U.S. government on Friday filed criminal and civil charges accusing a former executive of insider trading in advance of eBay Inc’s purchase of his e-commerce company.
The case against Christopher Saridakis, 45, is also notable because it marks the first time the U.S. Securities and Exchange Commission reached a so-called “non-prosecution” agreement with an individual, an unnamed trader who it said provided “early, extraordinary and unconditional” cooperation.
Federal prosecutors in Philadelphia charged Saridakis, who led the marketing solutions division of GSI Commerce Inc, in a so-called criminal information with securities fraud for leaking material nonpublic information in March 2011 about eBay’s plan to buy his company.
Investigators said the resident of Greenville, Delaware, encouraged two relatives and two friends to trade on his tips, leading to more than $300,000 of illegal profits. GSI shares rose nearly 51 percent on March 28, 2011, after eBay, the online retailer, announced its $1.96 billion purchase of the King of Prussia, Pennsylvaniabased company. The SEC said Saridakis agreed to pay $664,822 and accept an officer and director ban to settle its charges. The cooperating defendant and five other people agreed to pay more than $490,000 to settle related SEC charges. Three of these defendants got lessened penalties because they cooperated with the regulator.
A labourer repairs a street lamp next to a logo of Tesla Motors in Shanghai, April 22, 2014.