Whats potentially ominous for investors and traders is that the SEC had no evidence that the defendant, Luis Martin Caro Sanchez, a Spanish citizen, possessed any material, nonpublic information about Potash before it sued him. Nor was the SEC able to identify how he was tipped during a subsequent investigation. The agencys primary evidence was Sanchezs suspicious trades a few days before Potash publicly announced an unsolicited buyout offer that drove up its stock price and netted the trader a profit of nearly 500,000.
‘Enforcement 40’ for 2020
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