DALLAS (CN) – A stock trader agreed to return the $8.6 million he made on illegal inside trading of Perot Systems stock, after learning that the company was to be acquired by Dell, the SEC said. Reza Saleh worked for Perot Investments when he acquired, and traded on, the inside information.
Perot Systems’ stock price jumped from $17.91 to $29.56 the day the merger was announced.
Saleh, 53, of Richardson, Texas, “is an employee of Parkcentral Capital Management” of Plano, according to the federal complaint. “He also works for Hill Air Company I, LLC dba Perot Investments, Inc. (‘Perot Investments’), a private company that has common affiliates with PCCM and Perot Systems. Saleh has performed duties for Perot Systems. On or about September 4, 2009, in connection with his employment and duties at PCCM, Perot Investments and Perot Systems, Saleh learned material, nonpublic information about an impending agreement by Dell, Inc. (‘Dell’) to acquire Perot Systems through a tender offer.
“While in possession of the material, nonpublic information, Saleh made his call option purchases. On September 21, 2009, Perot Systems and Dell publicly announced their agreement, under which Dell has made a tender offer of $30 per share to acquire Perot Systems for a total price of approximately $3.9 billion.
“After the merger announcement, Saleh sold all of the call options, resulting in net trading profits of approximately $8,635,653.32.”
The SEC sued Saleh in September 2009 and announced on Tuesday that he would return the money and refrain from associating with any investment adviser.
The SEC also sued Amir Saleh, 49, who lives at the same address as Reza and holds a joint account with him.