The Securities and Exchange Commission (SEC) recently filed civil charges against Thai trader Badin Rungruangnavarat for trading ahead of the May 29 announcement of Shuanghui International’s acquisition of Smithfield Foods.
Badin made multiple trades in speculative securities the week before the announcement. The move earned him a profit of USD3.2 million as the stocks for Smithfield jumped nearly 25% after the news was made public. He opened his account only a few days earlier and his only transactions were in Smithfield securities.
A Federal District Court in Chicago froze Mr. Badin’s account after he tried to withdraw USD3 million, the New York Times reported.
