PHILADELPHIA (CN) - Stanley Manne illegally traded on inside information about a merger between Valley Forge and Synergetics, and stood to gain $85,601 from it, the SEC claims in Federal Court. The Commission says Manne got the information from a friend who asked Manne to replace him on the Valley Forge board.
Valley Forge is now known as Synergetics. Manne, 73, lives in Aventura, Fla.
The SEC says that the Valley Forge director who resigned to become that company's COO told Manne that the merger information was confidential and that he could not trade on it.
Nonetheless, Manne bought 105,680 shares of Valley Forge stock in 45 trades before the merger was announced, the SEC says. It says Manne did not immediately sell his shares after the merger was announced, but that "as a result of his unlawful trading Manne realized potential profits of $85,601."