SEC charges 11 over insider trading

16 July 2009

The Securities and Exchange Commission (SEC) has issued insider trading charges against 11 people in relation to acquisition deals at two firms.

It has alleged that five of the 11 - including one who was formerly an investment banker at Goldman Sachs - provided confidential information prior to the purchase of Seattle insurance firm Safeco by Liberty Mutual Insurance.

The remaining six traded information ahead of the acquisition of rental equipment Neff by Odyssey Investment Partners, the SEC said.

"These individuals chose money over integrity as they abused their positions of trust and misused privileged information," director of the SEC's office in Miami David Nelson said.

Robert Khuzami, director of the body's division of enforcement, added that the 11 traded the information with "reckless disregard" for markets and "utter disrespect" for their jobs.

Earlier this week, the SEC charged a Florida man with conducting a fraud worth $15 million in investor funds.

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