U.S. charges analyst in IBM insider trading case
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)
- Tweet this
- Share this
- Digg this
- Alabama man claims penis was amputated by mistake
- UPDATE 4-Liberian man in Lagos being tested for Ebola
- 'Weird Al' Yankovic still trying to wrap head around No. 1 album
- Asian economies to struggle on weak export demand - Reuters poll
- UPDATE 2-U.S. says Russia firing artillery over border at Ukraine military
India will find it difficult to support new global customs rules without "an assurance and visible outcomes" that a permanent solution is being negotiated over its concerns about public food stockholdings, the trade minister said on Friday. Full Article