U.S. al­leges in­sider trad­ing in eBay deal

Daily Trust - - NEWS -

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.

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