• Home
  • About
  • ‘Enforcement 40’ for 2020
  • Webcasts
  • Enforcement Hall of Fame
  • Contact
Securities Docket
Ankura
  • Class Actions
  • Criminal
  • Events
  • Features
  • Global
  • People
  • SEC
Browse: Home / 2013 / February / 25 / Heinz and the Perfect Insider Trading Scheme — CNBC

Heinz and the Perfect Insider Trading Scheme — CNBC

By Securities Docket on February 25, 2013, 7:55 am

As you already know, the Securities and Exchange Commission has obtained a court order freezing an account that holds thousands of call options on Heinz shares that were purchased the day before the deal was announced. The FBI has said it is talking to the SEC about the trades. Someone might go to jail before this is all over.

Notice that what got the attention of the SEC and the FBI was a highly unusual and highly profitable options purchase. As far as anyone knows, neither agency has any evidence of wrong-doing apart from the timing of the trade. No evidence of stolen documents. No taped conversations tipping off traders about the deal. Nothing but the trade. The lesson here is that if you want to use material nonpublic information obtained in breach of a fiduciary duty to achieve abnormal returns, you shouldn’t do it by trading. You should do it by not trading.

via Heinz and the Perfect Insider Trading Scheme — CNBC

Posted in SEC | Tagged Insider Trading, Web Watch

« Previous Next »

Subscribe

‘Enforcement 40’ for 2020

The inside story behind the collapse of Queensland Nickel

Our Sponsors

Securities-Docket_260x125_14Sec Ankura 260x125

Join Us On LinkedIn

Join the Securities Litigation and Enforcement Group on LinkedIn

Archives

Copyright © 2022 Securities Docket.

  • Home
  • About
  • ‘Enforcement 40’ for 2020
  • Webcasts
  • Enforcement Hall of Fame
  • Contact
  • Criminal
  • Class Actions
  • Features
  • Global
  • People
  • SEC
  • Events