PHILADELPHIA (CN) – Two financial advisers and their cronies made $1.8 million from inside trading, the SEC claims in Federal Court.
The SEC claims lead defendants Timothy J. McGee and Michael W. Zirinsky, both of whom are registered representatives with Ameriprise Financial Services, traded Philadelphia Consolidated Holding stock after getting inside information that it was merging with Tokio Marine Holdings.
McGee made $292,128 trading on the information he got from a Philadelphia Consolidated executive, the SEC said. The stock price rose 64 percent in one day upon announcement of the merger.
The SEC claims McGee tipped Zirinsky, who then tipped his own father and a friend, who then tipped another friend whose wife traded on the information.
The Zirinsky family made $562,673 in illegal profits; co-defendants Paulo Lam made $837,975 and Marianna Sze Wan Ho made $110,580, the SEC said.
Lam settled with the SEC for $1.2 million and Ho for $140,000 the SEC said in a statement.