Dec 23 The U.S. Securities and Exchange Commission said on Wednesday it had settled insider trading allegations against a former Capital One Financial Corp analyst.

Bonan Huang, the former employee, agreed to pay a total of more than $4.7 million in penalties and other payments without admitting or denying the allegations, the securities regulator said. (1.usa.gov/1Scoa6f)

The SEC in January filed a lawsuit in the federal court in Philadelphia against Bonan Huang and another Capital One employee, Nan Huang, saying the analysts used non-public data to trade in shares of consumer retail companies ahead of sales and earnings reports.

The lawsuit said from November 2013 to January 2015, the two analysts, who had access to the data as fraud investigators, made hundreds, if not thousands, of keyword searches for sales data on at least 170 publicly traded companies.

Capital One fired the analysts on Jan. 16.

The SEC said the litigation against Nan Huang will continue. Trial is scheduled for Jan. 11.

 

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Sriraj Kalluvila)

 

Source:
http://www.reuters.com/article/capital-one-fin-insidertrading-idUSL3N14C40Z20151223

 

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