Home > Financial, General > SEC charges ex-banker over Burger King insider trading

SEC charges ex-banker over Burger King insider trading

November 30th, 2012 Leave a comment Go to comments

(Reuters) – A former Brazilian landowner concluded to compensate $5.18 million to solve U.S. Securities and Exchange Commission charges of insider trading in Burger King Holdings Inc prior to the second-largest U.S. fast-food sequence concluded to a 2010 buyout.

According to the regulator, the former banker, Igor Cornelsen, 64, prodded his broker, Waldyr Da Silva Prado Neto, for tips after Prado, who afterwards worked at Wells Fargo & Co , had schooled from a patron which Burger King was up for sale.

Burger King concluded on Sep 2, 2010, to be paid for by in isolation equity organisation 3G Capital Partners Ltd for $3.26 billion, or $24 per share.

That was about 46 percent on top of the share cost when rumors which the builder of Whopper hamburgers competence be acquired had flush dual days earlier.

The SEC pronounced Cornelsen had started trade Burger King call options, a gamble the batch would rise, on May 18, 2010, one day after Prado told him in an email created in Portuguese, “I have a little info … You have to listen to this.”

Cornelsen would subsequently find tips by promulgation mysterious emails, observant such things in Portuguese as “Is the sandwich understanding going to happen?” the SEC said.

Finally, the regulator pronounced which on realizing how most he had done after the takeover was announced, Cornelsen exclaimed in an email to Prado, in English this time, “Wow! What a day!”

Friday’s allotment requires justice approval. It calls for Cornelsen, a proprietor of the Bahamas, and his firm, Bainbridge Group Inc, to compensate a $3.36 million fine, give up $1.68 million of bootleg distinction and compensate $136,621 of interest.

James Benjamin, a partner at Akin Gump Strauss Hauer & Feld who represents Cornelsen, had no evident comment.

The SEC filed associated insider trade charges opposite Prado, 42, on Sep twenty and won a justice sequence frozen his assets. It pronounced which lawsuit is continuing.

Now called Burger King Worldwide Holdings Inc , the Miami-based association again became publicly traded on Jun twenty by a “reverse merger” involving a bombard association co-founded by sidestep account physical education instructor William Ackman.

The box is SEC v. Cornelsen et al, U.S. District Court, Southern District of New York.

(Reporting by Jonathan Stempel in New York; modifying by Gerald E. McCormick and Matthew Lewis)

Categories: Financial, General Tags: , ,
  1. No comments yet.
  1. No trackbacks yet.