SEC sues UAE national for insider trading

SEC sues UAE national for insider trading

The US Securities and Exchange Commission (SEC) is suing a UAE national for suspected insider trading on...

July 28, 2009 12:10 by Dana El Baltaji

The US Securities and Exchange Commission (SEC) is suing a UAE national for suspected insider trading on the New York Stock Exchange.

SEC claims Khaled Al Hashemi, an IT manager at Abu Dhabi Oil Refining Co, abused insider information about an acquisition deal between Abu Dhabi-based International Petroleum Investment Co (IPIC) and Canada-based Nova Chemicals Corp. He allegedly profited $458,760 illegally.

IPIC acquired Nova Chemicals Corp. for $2.3 billion.

“Hashemi’s first known purchases of Nova common stock occurred on February 6, 2009, within a day or two of IPIC’s non-negotiable cash offer to acquire Nova,” the SEC said.

“Hashemi’s sudden liquidation of a substantial portion of the securities in his trading account portfolio, at substantial losses, in order to fund purchases of Nova common stock, also supports that conclusion that Hashemi knew, in advance of the announcement, that the Nova common stock price would rise substantially,” the SEC added.

Earlier this week, SEC sued Kuwaiti national Hazem Al Braikan for insider trading. Al Braikan reportedly committed suicide on Sunday after news of the suit was made public. He was CEO of Al Raya Investment Co.