Linus Unah – Fourth Estate Contributor
Washington, DC, United States (4E) – The U.S. Securities and Exchange Commission (SEC) has announced that three Peruvian traders have agreed to settle a pending case alleging that they traded on nonpublic information before the merger of two mining companies.
The SEC’s complaint filed in Sept. 2016 alleged that Nino Coppero del Valle, who worked at Canadian-based HudBay Minerals, tipped his close friend Julio Antonio Castro Roca with material nonpublic information about a tender offer his company submitted to acquire the shares of Augusta Resource Corp., whose principal business involved a copper mine near Tucson, Arizona.
Castro allegedly traded on the inside information through a brokerage account held by a shell company he set up in the British Virgin Islands in an attempt to avoid having the trades traced back to him and Coppero.
According to the SEC’s complaint, Castro and Coppero made more than $112,000 in illicit profits from these unlawful trades.
The settlements were approved Friday by a New York federal court.
“The settlement of these actions for full disgorgement plus penalties on top of that reflects the strength of the evidence gathered in the SEC investigation,” said Andrew M. Calamari, Director of the SEC’s New York Regional Office.
“Overseas traders who violate U.S. insider trading laws can expect to face stiff monetary sanctions to resolve their cases.”
Coppero agreed to pay repay $53,607 plus interest of $5,382. His close friend and fellow attorney Castro Roca agreed to repay $59,300 as well as an additional $5,514 in interest and $59,300 in penalties.
Without admitting or denying the allegations, the other trader, Ricardo Carrion, agreed to repay $54,144, plus $5,820 in interest and a $54,144 penalty.
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