SAN FRANCISCO (CN) - The vice president of Restoration Hardware tipped three friends that the company was about to be purchased, and they made more than $900,000 by trading on the inside information, the SEC claims in Federal Court. Ciriaco Rivor allegedly tipped his friends in 2007.
Rivor, of Millbrae, is charged with passing the inside information to Emmanuel Axiaq of San Carlos and Steven Lusardi of San Jose. Rivor allegedly told Axiaq to pass along the info to his father, Francis Axiaq.
Rivor told his friends not to buy too much Restoration stock, to avoid detection, the SEC says.
Restoration stock more than doubled in price after the announcement, rising from $2.68 to $6.44 per share.
Francis Axiaq got greedy, amassing nearly 250,000 shares before the buyout was announced, the SEC says.
All the defendants except Francis Axiaq settled with the SEC.
Rivor did not personally trade on the information, but agreed to pay a $68,000 fine.
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