U.S. charges analyst in IBM insider trading case

WASHINGTON Thu Dec 27, 2012 2:13am IST

A worker is pictured behind a logo at the IBM stand on the CeBIT computer fair in Hanover February 26, 2011. REUTERS/Tobias Schwarz/Files

A worker is pictured behind a logo at the IBM stand on the CeBIT computer fair in Hanover February 26, 2011.

Credit: Reuters/Tobias Schwarz/Files

Related Topics

Stocks

   

WASHINGTON (Reuters) - U.S. authorities on Wednesday announced charges against a research analyst for trading and tipping others ahead of a 2009 acquisition by computer giant IBM (IBM.N), expanding a related insider trading case filed last month.

Federal prosecutors charged Trent Martin, who worked at a Connecticut brokerage firm, for purchasing shares of SPSS before IBM agreed to the $1.2 billion deal. He was also charged with passing the information to others, including his roommate.

On November 29 the Justice Department and the Securities and Exchange Commission charged two former stockbrokers, including Martin's roommate, for their roles in the alleged insider trading scheme.

The three and others made more than $1 million by trading ahead of the acquisition, prosecutors said.

Martin was specifically named as the source of the information in instant messages between the two brokers, Thomas Conradt and David Weishaus, authorities said.

In a July 2009 message, referring to Martin by name, Conradt wrote: "holy f*** . . . god trent told me not to tell anyone . . . big mistake," according to the indictment unsealed on Wednesday.

Weishaus responded, "eh, we'll get rich."

Martin, an Australian citizen, was arrested on December 22 in Hong Kong, the Justice Department said. Martin could not immediately be reached for comment.

The Securities and Exchange Commission, which filed related civil charges against Martin on Wednesday, said he fled the United States to Australia soon after learning about the SEC's investigation.

IBM agreed to pay $50 per share for SPSS, a 42 percent premium to SPSS' closing price on the day before the purchase was announced.

(Reporting by Aruna Viswanatha; Editing by Dan Grebler)

FILED UNDER:

REUTERS EXCLUSIVE

Reuters Showcase

Documents' Leak

Documents' Leak

India widens oil leaks probe to defence ministry  Full Article 

Bharti-China Mobile

Bharti-China Mobile

Bharti Airtel, China Mobile to collaborate on 4G  Full Article 

Food Security

Food Security

India will not cut multi-billion dollar food handout programme - PM  Full Article 

Rich List

Rich List

Bill Gates tops Forbes rich list, Michael Jordan joins.  Full Article 

Tough Task

Tough Task

India needs sustained GDP growth of 9-10 percent - Jaitley.  Full Article 

Budget 2015

Budget 2015

Budget announcements and reactions from the industry  Full Coverage 

New Credit Cards

New Credit Cards

Insight: Costly shift to new credit cards won't fix security issues   Full Article 

Environment Watch

Environment Watch

Deforestation could shift monsoons, leaving India high and dry.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage