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Alleged Inside Trader|Must Pay $408,000

MIAMI (CN) - A Miami stock trader made $193,000 trading on inside information about a Chinese company and another $1.3 million from illegal short sales in three other companies, the SEC claims in court.

The SEC sued Charles Raymond Langston III and his companies CRL Management LLC and Guarantee Reinsurance Ltd., in Federal Court.

Illegally using inside information, Langston traded ahead of an announcement that AutoChina International was going to issue more stock, the SEC claims in the lawsuit. It claims he made $193,108 by selling 29,000 shares short.

Langston and the other defendants made another $1.3 million through similar short sales of Wells Fargo, Mitsubishi UFJ Financial Group, and Alcoa, according to the complaint.

In a statement, the SEC called the other defendants "his companies," referring to Langston.

Langston agreed to settle the inside-trading charged by disgorging $193,108, paying again as much as a penalty, plus $22,204 in interest, the SEC said.

The SEC statement said nothing about the other $1.3 million.

As is customary with the SEC, the defendant will not have to admit that he did anything wrong.

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