Menu1/6/15: Insider trading isn’t reserved for traders. In late December, the SEC charged two individuals in Chile with insider trading on nonpublic information that one person had learned while serving on the Board of Directors of CFR Pharmaceuticals S.A. Specifically, Juan Cruz Bilbao Hormaeche “… exploited highly confidential information from a...CFR Pharmaceuticals S.A. board meeting at which a tender offer by Abbott Laboratories was discussed.” He then used the services of a second individual to place trades, causing the purchase of millions of dollars’ worth of American Depositary Shares of CFR Pharmaceuticals. Upon learning of the insider trading, the SEC swiftly froze assets of the US brokerage accounts used to conduct the trading and charged the two men with insider trading.
