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

Tue Sep 30, 2014 2:00pm EDT
 
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WASHINGTON, Sept 30 (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)