New York (HedgeCo.Net) – The Securities and Exchange Commission yesterday charged Filip Szymik and Jordan Peixoto for insider trading when they heard hedge fund manager William Ackman and his hedge fund hedge fund, Pershing Square Management, had taken a $1 billion short position in Herbalife securities.

The SEC alleges that Szymik learned from his roommate, then a Pershing -yst, that Pershing planned to publicly announce its negative view of Herbalife. Szymik tipped Peixoto, who purchased Herbalife put options on December 19, 2012, one day before the announcement. As a result of his unlawful trading, Peixoto reaped $47,100 in illicit profits.

“Szymik and Peixoto chose to engage in illicit tipping and trading in advance of the announcement of market-moving information and today they are being held accountable for those offenses,” said Sanjay Wadhwa, senior -ociate director of the SEC’s New York Regional Office.

The Commission ordered Szymik to cease and desist and pay a $47,100 penalty. In Peixoto’s case, the SEC ins-uted cease-and-desist proceedings against him and is still determining what relief is appropriate.

Alex Akesson

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  1. Ahmar Rashid
    Oct 3, 2014 06:09 pm

    Blimey! The rich just get richer - or try too!