SEC Ties Bank Head To Insider Trading Schemes

Law360, New York (May 11, 2007, 12:00 AM EDT) -- The U.S. Securities and Exchange Commission has accused the investment banking head at Faysal Bank in Pakistan of insider trading prior to deal announcements made by companies including Texas utility TXU Corp.

The SEC alleged Friday that Ajaz Rahim raked in more than $7.5 million in profits, including $5.1 million just from TXU securities, after taking phone calls from a junior-level banker at Credit Suisse Group, which acted as the investment banker or adviser on the deals.

Federal regulators further accused Rahim of tipping off others,...
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