This past Wednesday, the U.S. securities regulator charged Reza Saleh for insider trading in Dell’s acquisition of Perot Systems. Saleh made $8.6 million in profits by purchasing stock options ahead of the acquisition deal. Saleh sold them when Perot Systems stock soared on the day of the deal.
Saleh learned about the upcoming deal when working for a Perot Systems-related company. Perot Systems was bought out for $3.9 billion. The SEC filed a complaint with a federal court in Texas to freeze Saleh’s assets.
Saleh bought 9,000 Perot Systems call options at the time of the insider trading scheme. Saleh also told a Perot director that he knew about the deal when he was trading.