DD Support Board and Research Team

[scion]

SEC charges two with insider trading ahead of Pershing-Herbalife battle

WASHINGTON, Sept 30 Tue Sep 30, 2014 2:00pm EDT
http://www.reuters.com/article/2014/09/30/sec-herbalife-intl-insidertrading-idUSL2N0RV1TY20140930

(Reuters) - A former Deloitte analyst and a consultant who roomed with a Pershing Square Management research analyst were charged Tuesday with insider trading, after they learned that Pershing's manager Bill Ackman was taking a short position in Herbalife, U.S. regulators said.

The Securities and Exchange Commission said Filip Szymik of New York learned that Ackman planned to bet against Herbalife with a $1 billion short position from his roommate, who worked at Pershing.

He then tipped Jordan Peixoto, of Toronto, who bought Herbalife put options a day before Ackman's announcement and reaped more than $47,000 in profits.

The SEC said Szymik agreed to settle and pay a penalty that is equivalent to Peixoto's ill-gotten gains, while Peixoto will fight the charges in the SEC's administrative court. (Reporting by Sarah N. Lynch)

http://www.reuters.com/article/2014/09/30/sec-herbalife-intl-insidertrading-idUSL2N0RV1TY20140930