Sec Freezes Assets Of Thailand-Based Trader For Insider Trading Ahead Of Smithfield Acquisition

[Misty]

Interesting story today in international newspapers today regarding this US SEC announcement:

SEC Freezes Assets of Thailand-Based Trader for Insider Trading Ahead of Smithfield Foods Acquisition Announcement

Washington, D.C., June 6, 2013 — The Securities and Exchange Commission today announced an emergency court order to freeze the assets of a trader in Bangkok, Thailand, who made more than $3 million in profits by trading in advance of last week's announcement that Smithfield Foods agreed to a multi-billion dollar acquisition by China-based Shuanghui International Holdings. Story here: https://www.sec.gov/news/press/2013/2013-102.htm

From the announcement, looks like the insider information may have come via a FB friend, and the trading was conducted using single share futures in a US InteractiveBrokers account. It was caught by the US authorities, but have to wonder how much of this stuff goes on in Thai accounts, undetected or at least unreported.

[Pib]

Don't worry the Thai govt version of the SEC will be all over this guy since it's now hit the news media. When stuff like this hits the news Thai govt agencies spring into action (for a few weeks anyway).

[kblaze]

The guy was a real dummy. He sets up an account and within ten days has like 99% of Smithfield options trading volume and just keeps racking up out of the money calls. Worst of all, he buys no other stocks, not one.