U.S. authorities on Wednesday announced charges against a research analyst for trading and tipping others ahead of a 2009 acquisition by computer giant IBM, expanding a related insider trading case filed last month.<\/p>\n
Federal prosecutors charged Trent Martin, who worked at a Connecticut brokerage firm, for purchasing shares of SPSS before IBM agreed to the $1.2 billion deal. He was also charged with passing the information to others, including his roommate.<\/p>\n
On November 29 the Justice Department and the Securities and Exchange Commission charged two former stockbrokers, including Martin’s roommate, for their roles in the alleged insider trading scheme.<\/p>\n
The three and others made more than $1 million by trading ahead of the acquisition, prosecutors said.<\/p>\n
Martin was specifically named as the source of the information in instant messages between the two brokers, Thomas Conradt and David Weishaus, authorities said.<\/p>\n
In a July 2009 message, referring to Martin by name, Conradt wrote: “holy f*** . . . god trent told me not to tell anyone . . . big mistake,” according to the indictment unsealed on Wednesday.<\/p>\n
Weishaus responded, “eh, we’ll get rich.”<\/p>\n
Martin, an Australian citizen, was arrested on December 22 in Hong Kong, the Justice Department said. Martin could not immediately be reached for comment.<\/p>\n
The Securities and Exchange Commission, which filed related civil charges against Martin on Wednesday, said he fled the United States to Australia soon after learning about the SEC’s investigation.<\/p>\n
IBM agreed to pay $50 per share for SPSS, a 42 percent premium to SPSS’ closing price on the day before the purchase was announced.<\/p>\n
(Reporting by Aruna Viswanatha; Editing by Dan Grebler)<\/p>\n
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