The US Securities and Exchange Commission on Thursday charged Hafiz Naseem, an investment banker with Credit Suisse (USA), with illegally divulging non-public information to a person believed to be a banker in Pakistan, concerning the leveraged buyout of TXU Corp. by an investor group led by Kohlberg Kravis Roberts & Co. and Texas Pacific Group.
Naseem allegedly misappropriated the information from his employer, Credit Suisse, which served as a financial advisor to TXU in connection with the buyout.
The Commission originally filed a complaint in the US District Court for the Northern District of Illinois on March 2, 2007, alleging insider trading ahead of the TXU buyout against Certain Unknown Purchasers of TXU Call Options.
Last week, the Commission amended its complaint to name Naseem as a defendant.
The Commission's Second Amended Complaint alleges that Naseem, in breach of his duty to Credit Suisse and its client TXU, telephoned the Pakistani banker on several occasions in February 2007 and disclosed non-public, material information about the proposed but unannounced TXU buyout.
The Pakistani banker allegedly traded on the inside information provided by Naseem and reaped millions of dollars in profits when the buyout was publicly announced. In addition to tipping off at least one of the traders in the TXU case, the SEC alleges that Naseem tipped off the Pakistani banker and possibly others concerning eight additional mergers or business deals since joining Credit Suisse's New York office in March 2006.
"The SEC has made insider trading ahead of mergers and acquisitions one of its top priorities," explained Linda Thomsen, Director of the SEC's Division of Enforcement.
She added:
"Naseem's illicit insider trading activities ahead of the TXU buyout transaction, and eight other merger transactions, demonstrate both the complex nature of insider trading and the SEC's aggressive pursuit of people who commit such violations, no matter where in the world the evidence may lead. The Commission will continue its aggressive efforts to seek out and punish every wrongdoer in the TXU case and in any other instance of insider trading."
.
Network Tweets
Network BlogsContent
provided by
|
Archive | Resources | Partners | Site Map | Links | Newsletter Archive | Contact | RSS Feeds | About | Syndication | Advertising & Marketing | Recruitment | Terms & Conditions | Privacy & Cookies
Copyright © 2012 - All Rights Reserved - Tax-News.com
IMPORTANT NOTICE: Tax-News.com has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments.
Write a comment