Thai stock trader Badin Rungruangnavarat is being sued by US regulators who claim that he made a USD3 million windfall by trading ahead of the announcement that Smithfield Foods Inc. (SFD) would be acquired by China’s biggest pork producer.
Badin bought out-of-the-money Smithfield call options and futures contracts last month after catching wind of confidential information from sources that may have included a Facebook friend, the Securities and Exchange Commission said yesterday in a statement announcing the lawsuit filed in federal court in Illinois.
The SEC obtained an emergency court order to freeze Badin’s assets, the agency said.
Shuanghui International Holdings Ltd. agreed on May 29 to buy Virginia’s Smithfield, the world’s largest pork producer, for about USD4.72 billion. Badin reportedly made his purchases from May 21 through May 28 using an account at Interactive Brokers LLC., the SEC said. He sought to withdraw more than USD3 million from his account on June 3, the SEC said.
“The speed in which we were able to bring this emergency action exemplifies the talent, tenacity, and commitment that the SEC staff brings to bear every day to keep our markets fair and investors safe,” said Andrew Ceresney, co-director of the SEC’s division of enforcement, according to Bloomberg.
The SEC said there is no known defense counsel for Rungruangnavarat at this time.
