Feeds

Dell Perot deal sparks insider dealing charges

Seeks asset freeze, illicit profits, fine

The essential guide to IT transformation

A Texas man has been charged with insider trading by the US Securities and Exchange Commission for trousering $8.64m of illegal profit, following Dell’s proposed acquisition of services firm Perot Systems.

A complaint was filed with the federal court in Dallas yesterday that alleged Reza Saleh, 53, of Richardson, Texas, bought 9,332 call option contracts on Perot Systems via two TD Ameritrade brokerage accounts, between 4 September and 18 September.

It’s claimed that Saleh learned of the potential merger between Dell and Perot through his employment. The filing states that the Texan works at Parkcentral Capital Management LP and privately-held Perot Investments Inc, which has close links with Perot Systems.

After Dell announced the $3.9bn proposed takeover of Perot Systems on 21 September, the SEC said Saleh sold his call option contracts.

"What's significant here, clearly, is the amount of money," SEC’s Fort Worth, Texas-based regional director Rose Romero told Reuters. "It's incredible. It's a lot of money for a single individual to realise."

The SEC’s filing (case no. 09-1778) said that Saleh carried out duties for Perot Systems and has friends who had access to details about all three of the Plano, Texas-based companies.

The Commission is calling on the court to freeze Saleh’s assets, cough up any illegally-gained profits and pay a civil fine.

It added that TD Ameritrade halted Saleh’s accounts following requests from SEC officials on the day Dell went public about its proposed merger with Perot Systems.

The Texas-based services company was founded by Ross Perot, who was a US presidential candidate in 1992 and 1996. He also founded services giant EDS, which last year was bought by Dell’s arch rival, Hewlett-Packard. ®

Next gen security for virtualised datacentres

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?