Subscribe to our mailing list

* indicates required







We seek to provide information, insights and direction that may enable the Financial Community to effectively and efficiently operate in a regulatory risk-free environment by curating content from all over the web.


Stay Informed with the latest fanancialish news.




Regulatory Sanctions

SEC Freezes Brokerage Accounts Behind Alleged Insider Trading

April 16, 2017

The SEC obtained an emergency court order to freeze assets in 2 brokerage accounts supposedly used last week to earn more than $1 million in insider trading profits in connection with the announced telecommunications merger between Liberty Interactive and General Communication. Following the acquisition announcement, General Communication’s shares rose more than 62%.


According to the SEC’s complaint, … unidentified traders used foreign brokerage accounts in the U.K. (Nomura International) and Lebanon (Cedrus Invest Bank) to purchase call option contracts through U.S.-based brokerages (Interactive Brokers and Nomura Securities Int’l) and on U.S.-based exchanges in the days leading up to the April 4 public announcement of the acquisition.


The traders began purchasing out-of-the-money options 10 days after GCI's special committee met to consider

and negotiate a potential transaction with Liberty and continued trading for the 2 weeks immediately prior to the announcement of the acquisition. Lazard Freres was retained to advise GCI on the deal.  The positions were liquidated following the announcement. 


The court’s order freezes the foreign accounts’ assets contained in the U.S. brokerages. The SEC’s investigation is ongoing.