A lot of leaking going on......
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July 19, 2006, 2:03PM
SEC Wins Freeze in Petco Trading Case
© 2006 The Associated Press
WASHINGTON â Federal regulators on Wednesday won an order freezing an estimated $862,000 in profits that may have been earned from insider trading in Petco Animal Supplies Inc. options before last week's announcement that the pet-supplies retailer had agreed to be purchased by two private-equity firms for $1.8 billion.
The SEC acted in hopes of preventing the money from flowing out of the country while it figures out who was involved. Regulators charged that from June 27 through July 13, clients of Man Financial Ltd. in London and Habib Bank AG in Zurich purchased almost 1,500 options, generating big profits when Petco shares surged 43 percent after news of its acquisition.
"Our action today demonstrates that the Commission will move swiftly to enforce U.S. insider trading laws and to prevent violators from reaping the benefits of their illegal trading, no matter where the misconduct may have occurred," said Randall Lee, the director of the SEC's Pacific Regional Office.
Petco, of San Diego, sells pet supplies through about 800 stores across the United States. The Habib trades were placed through the U.S. brokerage firm Prudential Equity Group LLC, while the Man trades were placed through its U.S. affiliate, Man Securities Inc., the SEC said.
***********************************************
July 19, 2006, 2:03PM
SEC Wins Freeze in Petco Trading Case
© 2006 The Associated Press
WASHINGTON â Federal regulators on Wednesday won an order freezing an estimated $862,000 in profits that may have been earned from insider trading in Petco Animal Supplies Inc. options before last week's announcement that the pet-supplies retailer had agreed to be purchased by two private-equity firms for $1.8 billion.
The SEC acted in hopes of preventing the money from flowing out of the country while it figures out who was involved. Regulators charged that from June 27 through July 13, clients of Man Financial Ltd. in London and Habib Bank AG in Zurich purchased almost 1,500 options, generating big profits when Petco shares surged 43 percent after news of its acquisition.
"Our action today demonstrates that the Commission will move swiftly to enforce U.S. insider trading laws and to prevent violators from reaping the benefits of their illegal trading, no matter where the misconduct may have occurred," said Randall Lee, the director of the SEC's Pacific Regional Office.
Petco, of San Diego, sells pet supplies through about 800 stores across the United States. The Habib trades were placed through the U.S. brokerage firm Prudential Equity Group LLC, while the Man trades were placed through its U.S. affiliate, Man Securities Inc., the SEC said.