Canadian sues SEC to stop Herbalife insider trading case

Mon Oct 20, 2014 4:30pm EDT
 
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NEW YORK Oct 20 (Reuters) - A Toronto man accused by the U.S. Securities and Exchange Commission of insider trading related to Herbalife Ltd on Monday sued the federal regulator agency to stop it from pursuing its case.

In a complaint filed in Manhattan federal court, Jordan Peixoto said the SEC's administrative proceeding against him deprives him of protections he would enjoy in federal court, and violates the U.S. Constitution because of the manner in which administrative law judges are appointed.

Peixoto also said he denies all allegations of wrongdoing and is ready to defend against the SEC's allegations.

The SEC alleged on Sept. 30 that Peixoto made an illegal $47,100 in December 2012 by trading in Herbalife put options, after learning that hedge fund manager William Ackman was about to reveal a $1 billion bet against the diet supplement company. (Reporting by Jonathan Stempel in New York, editing by G Crosse)