SEC Files Insider Trading Suit Over TXU
Federal regulators charged Friday that unknown investors pocketed more than $5.3 million in illegal profits from insider trading before TXU Corp. announced it had agreed to be sold for $32 billion.
The Securities and Exchange Commission said the insider trading was done through foreign brokerage firms to conceal the investors' identities.
SEC lawyers in Fort Worth filed a lawsuit in federal district court in Chicago seeking restitution and civil fines against unknown defendants who bought options on TXU shares last week. The agency said it won a court order freezing $5.4 million in assets.
The SEC said the options allowed the defendants to buy shares when they hit prices ranging from $57.50 to $62.50. At the time the options were purchased, most if not all were above the price of TXU shares at the time.
The Securities and Exchange Commission said the insider trading was done through foreign brokerage firms to conceal the investors' identities.
SEC lawyers in Fort Worth filed a lawsuit in federal district court in Chicago seeking restitution and civil fines against unknown defendants who bought options on TXU shares last week. The agency said it won a court order freezing $5.4 million in assets.
The SEC said the options allowed the defendants to buy shares when they hit prices ranging from $57.50 to $62.50. At the time the options were purchased, most if not all were above the price of TXU shares at the time.
posted by Stock Administrator @ 2:19 PM
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