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Insider Trading

San Francisco, CA: (Jan-15-08) The US Securities and Exchange Commission (SEC) brought charges against William Borchard and William Raben, two former PricewaterhouseCoopers employees in San Francisco, alleging that they engaged in insider trading. The suit stated that former senior associate Borchard allegedly told his friend and coworker Raben, on six different occasions about confidential corporate takeover plans before the news was released to the investing public. The SEC claimed that Borchard reportedly learned of the takeovers through his position handling financial due diligence for clients interested in mergers or acquisitions. The suit alleged that a former auditor for the company, Raben made more than $20,000 in profits by using Borchard's information and trading before public announcements of the acquisitions were announced. Raben made his profit by buying stock before public announcements were made and then selling his shares.

Sources stated that both men agreed to enter into a settlement agreement, though they did not admit or deny any wrongdoing. Raben agreed to a permanent injunction from any further violations of antifraud provisions of the federal securities laws, and will pay back his profits and profits made by two other people that he had tipped off during the scam. His total payout will be $48,000. Borchard, a Certified Public Accountant, consented to a permanent injunction and a civil penalty of nearly $21,000. Officials stated that he will be allowed to reapply as a practicing accountant before the commission after three years. [EXAMINER: INSIDER TRADING]

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Published on Jan-17-08


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