Sunday, August 7, 2005

SEC Files Emergency Action to Freeze Proceeds of Alleged Insider Trading in Reebok Securities

While most insider trading cases involve sums of money that are in the tens of thousands of dollars, the SEC has announced the filing of a case involving trades in out of the money call options on Reebok, where the Commission alleges that the defendant has over $2 million dollars in profits.

The case is interesting since the options were purchased on August 1 and 2, with the take over announcement coming on the 3rd. The options were sold, and over $800,000 was transfered out of the account to a bank account maintained in Austria.

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