US alleges insider trading involving Goldman account ahead of Heinz deal
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Buy SPH photosWASHINGTON (AP) - A brokerage account held at a subsidiary of Goldman Sachs in Switzerland was used for insider trading ahead of the H.J. Heinz acquisition, US federal regulators have alleged.
The Securities and Exchange Commission (SEC) obtained a court order on Friday to freeze the account and prevent the assets from being moved.
The account was used for trades placed on Wednesday that netted US$1.7 million (S$2.1 million) after the deal was announced. The SEC said it does not know the identity of the traders, but that they "took risky bets" that Heinz's stock price would increase.
On Thursday, Mr Warren Buffett's Berkshire Hathaway and the Brazilian firm 3G announced they agreed to buy Heinz. Heinz's stock rose nearly 20 per cent after the announcement.
