A lot of leaking going on...... *********************************************** July 19, 2006, 2:03PM SEC Wins Freeze in Petco Trading Case © 2006 The Associated Press WASHINGTON â Federal regulators on Wednesday won an order freezing an estimated $862,000 in profits that may have been earned from insider trading in Petco Animal Supplies Inc. options before last week's announcement that the pet-supplies retailer had agreed to be purchased by two private-equity firms for $1.8 billion. The SEC acted in hopes of preventing the money from flowing out of the country while it figures out who was involved. Regulators charged that from June 27 through July 13, clients of Man Financial Ltd. in London and Habib Bank AG in Zurich purchased almost 1,500 options, generating big profits when Petco shares surged 43 percent after news of its acquisition. "Our action today demonstrates that the Commission will move swiftly to enforce U.S. insider trading laws and to prevent violators from reaping the benefits of their illegal trading, no matter where the misconduct may have occurred," said Randall Lee, the director of the SEC's Pacific Regional Office. Petco, of San Diego, sells pet supplies through about 800 stores across the United States. The Habib trades were placed through the U.S. brokerage firm Prudential Equity Group LLC, while the Man trades were placed through its U.S. affiliate, Man Securities Inc., the SEC said.
Here is another one........ ************************************************ SEC Investigating Possible Insider Trading In Kerr-McGee Deal POSTED: 4:38 pm CDT July 13, 2006 UPDATED: 4:56 pm CDT July 13, 2006 DENVER -- Federal regulators have requested information from Anadarko Petroleum Corporation about its $21 billion acquisition of two energy companies. Houston-based Anadarko is buying Oklahoma City-based Kerr-McGee Corp. and Denver-based Western Gas Resources Inc. The Denver Post reported Thursday that the Securities and Exchange Commission is looking at possible insider trading. The newspaper cites spikes in the volume of some stock options for Kerr-McGee and Western Gas before the deal was announced. A call option allows an investor to buy stock at a set price before a predetermined deadline. Representatives of Anadarko and Kerr-McGee confirmed the SEC inquiry into their companies but declined to provide specifics. A Western Gas official didn't return a phone call seeking comment.
Insider trading in various forms is rampant. That's another reason why the market is tough to beat... It's actually worse than a random walk... It's random walk + many players with inside info. It all comes down to a basic fact: Enterpreneurs are always MUCH smarter and ** more creative ** than regulators. When is the last time the smartest person in your class... Dreamed of being an ass-covering NASD technocrat?