Thursday, July 23, 2009
Thomas Heath, Washington Post,
Thomas Heath, Washington Post,
SEC Files Charges Against Middle East Banker After Buyout Hoax
An SEC complaint, filed Thursday in the U.S. District Court for the Southern District of New York, alleges that Al-Braikan and three related firms based in the Middle East reaped millions of dollars in profits from trading around hoax offers to acquire U.S. companies.
The Securities and Exchange Commission obtained an emergency court order to freeze $5 million in trading profits and filed civil charges against Hazem Khalid Al-Braikan, a Kuwait-based trader, "for engaging in an illicit scheme".
According to the complaint, Al-Braikan and the other firms amassed positions in Harman before the bogus news release was distributed to media organizations on Sunday. Then, after the company's shares shot up, Al-Braikan and the firms sold their stakes for a substantial profit, the complaint alleged.
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Posted by Editor on 07/23/09 at 07:10 PM •
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