Gerdau Exec Settles Insider Trading Suit With SEC

Law360, New York (September 29, 2008, 12:00 AM EDT) -- A former director of Brazil's Gerdau SA paid more than $165,000 Monday to settle U.S. Securities and Exchange Commission allegations of insider trading related to the steelmaker’s acquisition of Chaparral Steel Co.

As a member of Gerdau’s board of directors, Carlos J. Petry used material nonpublic information to buy 8,500 shares of Chaparral stock days before Gerdau Ameristeel — Gerdau’s Florida-based subsidiary — acquired the Texan mini-mill steel producer in July 2007, according to the SEC.

To settle the agency’s charges, Petry has agreed to relinquish...
To view the full article, register now.