DENVER (CN) - Denver stock broker Scott Reiman will pay $890,000 to settle inside-trading charges, the SEC said Monday.
Reiman illegally traded on information he got from Delta Petroleum CEO Roger Parker, the SEC said.
The SEC sued Parker and trader Michael van Gilder, a relative of Parker, last November. They were accused of making $165,000 by trading on the inside information.
The inside information was that (nonparties) Tracinda, owned by Kirk Kerkorian, was going to invest $684 million in Delta.
Delta Petroleum shares rose by almost 20 percent upon the public announcement, and Reiman, 48, "reaped substantial illicit profits," the SEC said. This was in 2007.
Delta filed for bankruptcy in December 2011, and re-emerged as Par Petroleum.
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