VMware on the New York Stock Exchange, December 14, 2021.
Source: New York Stock Exchange
The compliance officer for a Chinese payment processing company Paid He was indicted by the SEC and New York federal prosecutors for alleged insider trading violations after breaking into his girlfriend’s computer and spying on meetings between investment bankers and companies.
Steven Teixeira, former chief compliance officer for the U.S. arm of China’s Lianlian Global, pleaded guilty to federal charges under the cooperation agreement. The SEC charges remain unresolved, the agency said Thursday.
Teixeira allegedly obtained insider information, including prior knowledge. Broadcom’s announced to acquire for $65 billion VMware From 2022 we shared it with our employees for profit. The SEC said Teixeira obtained the information from the Outlook calendar and files of his girlfriend, who was employed as an executive assistant at an unnamed New York-based investment bank.
The non-public information includes term sheet data and proposed deals from a number of tech companies, including the VMware deal and Thoma Bravo’s planned acquisition of Proofpoint, which will result in more than $730,000 in profits for Teixeira. supposedly obtained.
Teixeira’s girlfriend, who wasn’t named in the complaint, said, “Check your work emails while you’re away during working hours and alert you if you get any emails that need your attention.” asked.
In 2021, Proofpoint was taken private in a $12.3 billion deal by private equity firm Thoma Bravo, a period during which Teixeira allegedly traded insider information. Teixeira purchased options in Proofpoint stock on April 22, 2021, days before the announcement. The acquisitions of Broadcom and VMware have been delayed by regulators.
Teixeira allegedly shared insider information with a colleague, Jordan Meadow, who is also indicted for violating federal insider trading laws.
The SEC alleges that Meadow used the information in his work as an investment advisor to lure clients to lucrative opportunities and earn “hundreds of thousands of dollars” in fees.
Facing the meadow federal feewas announced in New York’s Southern District on Thursday.
“Our complaint is brazen by Mr. Teixeira, who sought to make a fortune by stealing information from his girlfriend’s laptop, and Mr. Meadow, an industry veteran who was intent on using the information to make his own profit. It claims a betrayal of trust,” said SEC’s Scott Thompson. Philadelphia Sub-Regional Director, Said in a press release.
clock: Senators Kennedy and Van Hollen introduce bills to stop insider trading by foreign executives
