NU Online News Service, July 16, 3:59 p.m. EDT
The Securities and Exchange Commission has filed insider trading complaints against five individuals in connection with Liberty Mutual's acquisition of Safeco.
The SEC filed three separate complaints in U.S. federal courts in Orlando, Fla.; Seattle, Washington; and Springfield, Mass.
Safeco was acquired in 2008 in a transaction valued at $6.2 billion.
In the Florida complaint, the SEC alleged that Anthony Peres of Maitland, Fla., an investment banker at Goldman Sachs working on the potential Safeco deal for a client, illegally tipped off his brother Ian C. Peres of Orlando, Fla. about the pending transaction.
Ian bought stock in Safeco one day ahead of the public announcement and later sold it for a profit of more than $152,000, it was charged.
In the second complaint relating to the Safeco deal, it was alleged that Math J. Hipp of Seattle misappropriated information about the deal from his wife, an executive assistant at Safeco. He bought Safeco stock six days before the public announcement and later sold it for a profit of more than $118,000, the complaint said.
The SEC said the Perez brothers settled the charges without admitting or denying the allegations. Anthony Perez will pay a penalty of $25,000 and Ian Perez agreed to pay close to $153,000.
Mr. Hipp settled with the SEC paying a total of approximately $240,000 and neither admitted or denied the allegations.
In a third complaint, the SEC said Peter E. Talbot of Springfield, Mass., who was an assistant vice president at Hartford Investment Management Co., a subsidiary of The Hartford Financial Services Group, tipped off his nephew Carl E. Binette of Ludlow, Mass., after learning that Safeco was an acquisition target.
The two bought Safeco stock over a six-day period leading up to the announcement of the sale. They sold their stock after the announcement making a profit of $615,000.
The SEC is seeking disgorgement of the profits plus interest, civil penalties and barring the two from trading in stocks in the future.
A spokeswoman for The Hartford said the company had no comment.
Liberty Mutual did not immediately return a request for comment.
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