US 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.
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.
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.
The three and others made more than $1 million by trading ahead of the acquisition, prosecutors said.
was specifically named as the source of the information in instant
messages between the two brokers, Thomas Conradt and David Weishaus,
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
Weishaus responded, "eh, we'll get rich."
an Australian citizen, was arrested on December 22 in Hong Kong, the
Justice Department said. Martin could not immediately be reached for
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
IBM agreed to pay $50 per share for SPSS, a 42
percent premium to SPSS' closing price on the day before the purchase
© Thomson Reuters 2012