SEC Charges Accuses Former Deloitte Employee of Insider Trading

Updated

The Securities and Exchange Commission accused a former employee of Deloitte Tax LLP and his wife with earning millions of dollars from insider trading.

The SEC said that Arnold McClellan and his wife Annabel leaked information about at least seven confidential acquisitions by Deloitte clients to family members in London. The couple lives in San Francisco.

Annabel's brother-in-law then took positions in companies that were the targets of acquisitions, earning $3 million of profits, according to the SEC.

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Half the money was allegedly funneled back to Annabel.

"The McClellans might have thought that they could conceal their illegal scheme by having close relatives make illegal trades offshore. They were wrong," said Robert Khuzami, director of the SEC's Division of Enforcement.

McClellan allegedly leaked information on transactions including the 2008 purchase of Getty Images Inc by a private equity firm.

The SEC's complaint against the McClellans seeks fines and disgorgement of illicit profits.

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