[ad_1]
VMware on the New York Stock Exchange, December 14, 2021.
Source: NYSE
He was Head of Compliance at a Chinese payment processor Accused He was charged by the Securities and Exchange Commission and New York federal prosecutors with violating insider trading laws after hacking into his girlfriend’s computer to watch meetings between investment bankers and firms.
Stephen Teixeira, who served as chief compliance officer for the US arm of Chinese company LianLian Global, pleaded guilty to the federal charges under a cooperation agreement. On Thursday, the agency said the SEC fee remains pending.
Teixeira allegedly obtained insider information, including foreknowledge of from Broadcom’s announced a $65 billion acquisition of VMware From 2022, and share with a colleague for profit. The SEC says Teixeira obtained the information from the calendars and files of his girlfriend, who worked as an executive assistant at an unnamed New York investment bank.
The non-public information included term sheet statements and planning for deals by a host of tech companies, including the VMware deal and Thoma Bravo’s planned purchase of Proofpoint, which allowed Teixeira to collect more than $730,000 in dividends.
Teixeira’s friend, who is not named in the complaint, asked him to “check her work email while she is away during the workday, and alert her if she receives emails that require her attention.”
Proofpoint was taken over in 2021 by private equity firm Thoma Bravo in a $12.3 billion deal, in the time frame Teixeira was allegedly insider trading. Teixeira purchased options on Proofpoint stock on April 22, 2021, days before the announcement. Broadcom’s deal for VMware has been delayed by regulators.
Teixeira allegedly shared the inside information with his partner, Jordan Meadow, who is also accused of violating federal insider trading laws.
The SEC alleged that Meadow used the information in his work as an investment advisor, directing his clients toward profitable opportunities and earning “hundreds of thousands” of dollars in commissions.
The meadow also faces Federal feeswhich was unveiled Thursday, in the Southern District of New York.
“Our complaint alleges an outright breach of trust by Teixeira, who embezzled information from his girlfriend’s laptop computer to make a quick buck, and by industry veteran Meadow, who was all too eager to use the information to line his own pockets,” said Scott Thompson, an SEC member. Associate Regional Director in Philadelphia, He said In a press release.
He watches: Senators Kennedy and Van Hollen introduced a bill to prevent foreign executives from insider trading
[ad_2]
