Friday, October 14, 2005

Listen to Your Wife, But Don't Trade on What She Says

Husbands are frequently accused of not listening to their wives, although I've never heard that complaint in my household.  In an insider trading case filed by the SEC, it seems that Robert Petrosky not only listened to his wife, but he used the inside information she provided about an upcoming deal to buy ahead of the announcement.  Petrosky's wife is an employee of Valero Energy, and she discussed a pending acquisition by Valero of Premcor, Inc.  Without his wife's knowledge, Petrosky purchased Premcor shares, and reaped profits of approximately $41,000 after the announcement of the acquisition, which he will now have to disgorge in a settlement with the SEC, along with a civil money penalty of approximately $20,000.  Petrosky may want to revert to nodding his head and occasionally mumbling "uh-huh" in the future.  The SEC's Litigation Release (here) discusses the settlement. (ph)

http://lawprofessors.typepad.com/whitecollarcrime_blog/2005/10/listen_to_your_.html

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