Wednesday, April 20, 2005

SEC Sues Former Accounting Firm Employee and Three Tippees for Insider Trading

The SEC sued Alina Welt, a former benefits analyst with two accounting firms for insider trading based on tips she gave to her husband, Andrew, about companies that were involved in merger activity.  Andrew traded on the material nonpublic information and also tipped his brother, Bruce, and a friend, Bruce Hirschhorn.  The defendants made over $400,000 from their trading in Renex Corp., Travel Services International, Inc., Intermedia Communications, Inc., Digex, Inc. and Sensormatic Electronics Corp. In addition to disgorging their profits, the defendants agreed to pay civil penalties of approximately $1.2 million, including a penalty of $393, 669 by Alina and Andrew Welt.  Whether it be a bull or bear market, insider trading just never seems to go away -- the allure of "free money." (ph)

http://lawprofessors.typepad.com/whitecollarcrime_blog/2005/04/sec_sues_former.html

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