Two Indian-Americans Charged With Insider Trading

Two Indian-Americans Charged With Insider Trading

Monday, 28 April 2014, 04:43 Hrs
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WASHINGTON: Two Indian American doctors are among six people charged by the U.S. federal regulator with insider trading in advance of eBay's acquisition of an e-commerce company to reap more than $300,000 in illegal profits.

The Securities and Exchange Commission charged that Suken Shah and his brother Shimul Shah received confidential tips from Christopher Saridakis, the CEO of the marketing solutions division of GSI Commerce, an e-commerce company.

To settle the SEC's charges, Saridakis agreed to an officer-and-director bar and must pay $664,822, which includes a penalty equal to twice the amount of his tippees' profits.

In a parallel action, the U.S. Attorney's Office for the Eastern District of Pennsylvania Friday announced criminal charges against Saridakis, who lives in Delaware.

The SEC alleges that Saridakis separately tipped his friend Suken Shah, a doctor who resides in Wilmington, Delaware, with non-public information about the deal following the March 11 meeting with eBay executives.

Shah earned insider trading profits of $9,838 and provided the non-public information to his brother and another individual, SEC alleged.
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Source: IANS
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