Monday, March 19, 2012
The SEC recently charged Sherif Mityas, a Chicago-based management consultant, with insider trading based on confidential information about his client’s impending takeover of a Long Island-based vitamin company. According to the SEC, Mityas was retained by Washington, D.C.-based private equity firm The Carlyle Group to provide strategic advice related to the acquisition of NBTY Inc. That same month, Mityas purchased NBTY stock and subsequently tipped a relative who also bought NBTY shares. After Carlyle publicly announced its acquisition of NBTY, Mityas and his relative sold their NBTY stock for a combined profit of nearly $38,000.
Mityas agreed to pay more than $78,000 to settle the SEC’s charges. In a parallel action, the U.S. Attorney’s Office for the Eastern District of New York today announced the unsealing of criminal charges against Mityas.