US Securities and Exchange Commission (SEC) has charged Michael Van Gilder, the CEO of Van Gilder Insurance Company over his alleged role in insider trading during the stake acquisition of Delta Petroleum by Tracinda.
The market watch dog accused the executive that he obtained the clandestine information ahead of planned acquisition of 35% stake for $684m, in the aforesaid petroleum company and booked more than $161,000 in illegal trading profits.
He encouraged his friends, co-worker and relatives to purchase the share, subsequently, when Tracinda's investment was publicly announced, the petroleum company stock price shot up by nearly 20%.
SEC Enforcement Division's Market Abuse Unit and associate director of the New York Regional Office deputy chief Sanjay Wadhwa said, "Michael Van Gilder crossed the line when he took advantage of highly confidential corporate information to make trades and reap illicit profits."
The apex market regulator's complaint charges Gilder with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, and seeks a final judgment ordering him to disgorge ill-gotten gains and pay prejudgment interest and a financial penalty.
Additionally, it has sought permanently enjoining him from future violations of these provisions of the federal securities laws.
