Five Hit With Insider Trading On Citizens Acquisition
Five people--including a hedge fund manager and bank employee--have been been charged by the SEC for allegedly taking advantage of non-public insider information about Citizens Financial Group’s 2004 acquisition of Charter One Financial. Here’s how the deal went down” Citizens employee Shengnan Wang found out that Citizens was in the final stages of due diligence on its acquisition of Charter One. According to the complaint, Wang shared this info with her husband, Hai Liu, and with Michael Tom, a former employee of Citizens who ran a hedge fund called Global Time Capital Management LLC which the couple had about $60,000 invested in. Wang and Hai Lui are also getting hit with one count of securities fraud. The maximum sentence they could be looking at? 10 years hard time, with an additional three years of supervised release and a $1 million fine.
5 Charged With Insider Trading [NYSSCPA.org]
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