The Securities and Exchange Commission on Wednesday said it charged 11 people in connection with separate insider trading schemes related to acquisition deals at two different companies.
Three of the 11 have reached agreements on financial settlements with SEC, while the SEC said it's seeking injunctions against further violations, the return of ill-gotten gains with prejudgment interest and financial penalties from the other eight.
According to the SEC, five people illegally tipped off others or traded on private information ahead of Liberty Mutual Insurance Co.'s 2008 announcement that it would acquire Seattle-based insurance company Safeco Corp.
One of those five charged is Anthony Perez of Maitland, Fla., a former Goldman Sachs investment banker, who the SEC says illegally tipped off his brother, Ian C. Perez of Orlando, Fla.
Ian Perez bought Safeco call options one day ahead of the public announcement and later sold them for a profit of more than $152,000, the SEC said.