SEC Charges Analyst With Insider Trading


On Wednesday, the U.S. Securities and Exchange Commission announced additional charges in an insider trading case alleging trading on nonpublic information ahead of IBM's acquisition of SPSS.

Amending a Nov. 29 complaint alleging that U.S. retail stock brokers Thomas C. Conradt and David J. Weishaus used insider information about IBM's planned purchase of SPSS as part of an "insider trading scheme that yielded more than $1 million in illicit profits," the SEC this week announced it is now filing charges against the stock analyst who allegedly tipped them to the impending acquisition, stock analyst Trent Martin.

In a press release, the SEC said a lawyer working on the deal spoke to Martin in confidence, seeking "moral support, reassurance, and advice." The SEC alleges Martin "knowingly disregarded insider trading laws to enrich himself," using nonpublic knowledge of the deal to buy $50,000 worth of SPSS stock ahead of IBM's announcement.The SEC says Martin was Conradt's roommate.

Upon learning of the SEC's investigation, Martin fled the country and is living in Hong Kong, according to the SEC. According to The Wall Street Journal, Conradt and Weishaus have pleaded not guilty to insider trading charges.


The article SEC Charges Analyst With Insider Trading originally appeared on

Fool contributor Rich Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of International Business Machines. Motley Fool newsletter services recommend International Business Machines. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Originally published