VMware on the NYSE, Dec. 14, 2021.
Supply: NYSE
The compliance leader at a Chinese language fee processor used to be charged via the SEC and New York federal prosecutors with violating insider buying and selling rules after sneaking onto to his female friend’s laptop to view conferences between funding bankers and corporations.
Steven Teixeira, who served as leader compliance officer for the U.S. arm of China’s LianLian World, pleaded to blame to the federal fees below a cooperation settlement. The SEC fees stay remarkable, the company stated on Thursday.
Teixeira allegedly got insider knowledge, together with advance wisdom of Broadcom’s introduced $65 billion acquisition of VMware from 2022, and shared it with an affiliate for benefit. The SEC says Teixeira were given the guidelines from the Outlook calendars and recordsdata of his female friend, who used to be hired as an government assistant at an unnamed New York-based funding financial institution.
The private knowledge incorporated time period sheet information and deal making plans via a bunch of generation corporations, together with for the VMware deal and Thoma Bravo’s deliberate acquire of Proofpoint, allegedly permitting Teixeira to gather over $730,000 in benefit.
Teixeira’s female friend, who used to be now not named within the criticism, requested him “to test her paintings e-mail whilst she used to be away right through the workday, and to alert her if she won emails that required her consideration.”
Proofpoint used to be taken non-public in 2021 via non-public fairness company Thoma Bravo in a $12.3 billion deal, inside the time-frame that Teixeira used to be allegedly buying and selling on insider knowledge. Teixeira bought choices on Proofpoint inventory on April 22, 2021, days forward of the announcement. Broadcom’s deal for VMware has been behind schedule via regulators.
Teixeira allegedly shared the insider knowledge along with his affiliate, Jordan Meadow, who could also be charged with violating federal insider buying and selling rules.
Meadow used the guidelines in his paintings as an funding guide, guidance his shoppers against profitable alternatives and gaining “loads of hundreds” of greenbacks in commissions, the SEC alleged.
Meadow additionally faces federal fees, which have been unveiled on Thursday, within the Southern District of New York.
“Our criticism alleges brazen betrayals of accept as true with via Teixeira, who misappropriated knowledge from his female friend’s pc to make a snappy greenback, and via industry-veteran Meadow, who used to be all too keen to make use of the guidelines to line his wallet,” Scott Thompson, SEC’s Philadelphia affiliate regional director, stated in a press liberate.
WATCH: Sens. Kennedy and Van Hollen introduce invoice to dam overseas executives from insider buying and selling
