An Aggressive Insider Trading Case

Law360, New York (July 29, 2011, 1:43 PM EDT) -- The U.S. Securities and Exchange Commission filed another “suspicious purchases” insider trading case. SEC v. Compania International Financier SA, Civil Action No. 11 CV 4904 (S.D.N.Y. Filed July 15, 2011).

Typically these cases are brought against “one or more unknown purchasers” of the securities of a takeover stock. Frequently, they involve traders who have taken huge positions in naked options shortly prior to the takeover announcement. The commission’s aggressive positions in the past have often paid off.

In this instance the commission had more than in the typical...
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