{"id":41400,"date":"2014-04-01T07:11:33","date_gmt":"2014-04-01T11:11:33","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=41400"},"modified":"2014-04-01T07:20:09","modified_gmt":"2014-04-01T11:20:09","slug":"two-men-caught-trading-on-confidential-information-gained-through-eavesdropping","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/04\/2014\/two-men-caught-trading-on-confidential-information-gained-through-eavesdropping.html","title":{"rendered":"Two Men Caught Trading on Confidential Information Gained Through Eavesdropping"},"content":{"rendered":"

\"Story\"<\/a>New York (HedgeCo.Net) – \u00a0A man is being charged with violating a duty of trust by trading during a blackout window after he overheard work calls made by his wife.<\/p>\n

\u201cSpouses and other family members may gain access to highly confidential information about public companies as part of their relationship of trust,\u201d said Jina L. Choi, director of the SEC\u2019s San Francisco Regional Office. \u201cIn those circumstances, family members have a duty to protect and safeguard that information, not to trade on it.\u201d<\/p>\n

Tyrone Hawk of Los Gatos, Calif., overheard his wife,\u00a0a finance manager at\u00a0multinational\u00a0computer technology corporation\u00a0Oracle Corp speaking of her company\u2019s plan to acquire Acme Packet Inc. Hawk\u00a0also had a conversation with his wife in which she informed him that there was a blackout window for trading Oracle securities because it was in the process of acquiring another company, the SEC said.<\/p>\n

According to the SEC\u2019s complaint, Hawk bought Acme Packet shares before the acquisition was announced in February 2013, and reaped approximately $150,000 by selling after the stock price rose 23 percent on the news. Hawk agreed to pay more than $300,000 to settle the SEC\u2019s charges.<\/p>\n

In an unrelated case, the SEC alleges that Ching Hwa Chen of San Jose, Calif., profited from gleaning confidential information in mid-2012 that his wife\u2019s employer, Informatica Corp., would miss its quarterly earnings target for the first time in 31 consecutive quarters. During a drive to vacation in Reno, Nev., Chen overheard business calls by his wife, who previously advised Chen not to trade in Informatica securities under any circumstances.<\/p>\n

However, after they returned from Reno, he established securities positions designed to make money if the stock price fell. Informatica\u2019s shares declined more than 27 percent after it announced the earnings miss, and Chen realized nearly $140,000 in profits.<\/p>\n

Chen agreed to pay approximately $280,000 to settle the SEC\u2019s charges.<\/p>\n

Alex Akesson
\nEditor for\u00a0HedgeCo.net<\/a>
\nalex@hedgeco.net<\/a>
\nHedgeCo.Net<\/a>\u00a0is a premier\u00a0hedge fund database<\/a>\u00a0and community for qualified and accredited investors only. Membership in\u00a0HedgeCo.net<\/a>\u00a0is FREE and EASY. We also offer FREE LISTINGS for\u00a0Hedge Funds<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"

New York (HedgeCo.Net) – \u00a0A man is being charged with violating a duty of trust by trading during a blackout window after he overheard work calls made by his wife. \u201cSpouses and other family members may gain access to highly […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,3],"tags":[],"class_list":["post-41400","post","type-post","status-publish","format-standard","hentry","category-hedge-fund-fraud","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/41400","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=41400"}],"version-history":[{"count":5,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/41400\/revisions"}],"predecessor-version":[{"id":41406,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/41400\/revisions\/41406"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=41400"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=41400"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=41400"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}