Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

A Member of the Law Professor Blogs Network

Wednesday, May 4, 2011

FINRA Bars Broker for Insider Trading

FINRA recently announced that a former registered representative, Michael Hendry, has been barred from the securities industry for engaging in insider trading and for failing to respond truthfully to questioning by investigators in FINRA's Office of Fraud Detection and Market Intelligence (OFDMI). Hendry was also fined nearly $70,000, which represents the unlawful profits he received from the transactions.  Hendry, of Chicago, worked as a divisional vice president of Pacific Select Distributors, Inc. from November 2005 to September 2010. He was barred for buying shares of Boots & Coots, Inc. (WEL) while he was in possession of information, obtained from an insider at WEL, that another company was going to acquire WEL.  

On February 25 and 26, and March 11 and 17, 2010, Hendry purchased 73,000 shares of WEL, paying between $1.73 and $2.16 per share. On April 9, 2010, the company announced that it had agreed to be acquired by Halliburton for $3 per share, at a total transaction value of approximately $204.4 million.  By April 12, 2010, the next trading day, WEL's stock price increased $0.67, or 25 percent, to $2.95 per share. Following the announcement of WEL's acquisition, Hendry sold all of his WEL shares for between $2.94 and $3 per share, realizing a profit of $69,955.

In settling this matter, Hendry neither admitted nor denied the charges, but consented to the entry of FINRA's findings

http://lawprofessors.typepad.com/securities/2011/05/finra-bars-broker-for-insider-trading-.html

Other Regulatory Action | Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef014e883d1ef0970d

Listed below are links to weblogs that reference FINRA Bars Broker for Insider Trading :

Comments

Post a comment