Feeds

Dell Perot deal sparks insider dealing charges

Seeks asset freeze, illicit profits, fine

Security for virtualized datacentres

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. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
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?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.