The Securities and Exchange Commission said it charged 11 people in connection with separate insider trading schemes related to acquisition deals at two different companies, reports The Associated Press.
Three of the 11 people reached agreements on financial settlements with SEC. According to the SEC, the five people illegally tipped off others or traded on private information before Liberty Mutual Insurance’s announcement in 2008 that it would acquire Seattle-based insurance company Safeco.
Anthony Perez, a former Goldman Sachs investment banker, is charged by the SEC has having tipped off his brother, Ian C. Perez. Ian Perez proceeded to call options one day ahead of the public announcement and later sold them for a profit of more than $152,000.
Anthony Perez will pay a penalty of $25,000 and Ian Perez will pay disgorgement and prejudgment interest totaling $152,992. Neither brother has admitted or denied the allegations.
Three others were charged in relation to the Liberty Mutual acquisition, including Math J. Hipp, who received confidential information from his wife at Safeco, and as a result, earned a profit of more than $118,000.
Under a settlement agreement, Hipp will pay $239,770 without admitting or denying allegations.
Peter E. Talbot, a financial analyst, and his nephew, Carl E. Binette, were also charged in connection with Safeco.
Thomas L. Borell, a Miami-based lawyer, Sebastian De La Maza, brothers Alberto and Jose G. Perez, Kevan D. Acord, and Philip C. Growney, were also charged for insider trading in connection with private equity firm Odyssey Investment Partners.