SEC Adds Additional Defendant In Shaw Insider Trading Case
Posted by Brenda Hamilton Securities Lawyer
On March 6, 2014, the Securities and Exchange Commission (SEC) announced it had added Billy Joe Adcox, Jr. of Ruston, Louisiana to a civil injunctive action in the United States District Court for the Western District of Louisiana, alleging that Adcox, Scott Zeringue and Jesse Roberts, III engaged in insider trading in the securities of The Shaw Group, Inc. (“Shaw”) ahead of a public announcement that Shaw was going to be acquired by Chicago Bridge & Iron Company N.V. (“CBI”).
The SEC alleges that Adcox was tipped by his long-time friend, Jesse Roberts, III, also of Ruston, Louisiana. According to the SEC’s insider trading complaint, Adcox knew Roberts got the confidential information about the impending merger from Roberts’ brother-in-law, Zeringue, a Shaw insider. Adcox and his relative allegedly bought Shaw stock based on the tip and, about two weeks later, sold the stock for a profit of over $111,000. Adcox’s relative also tipped a third unnamed individual, who made about $43,000.
The SEC’s insider trading charges against Adcox were added to a civil complaint filed last week against Zeringue and Roberts, alleging that Zeringue made insider trading profits of over $30,000 and Roberts netted profits of over $765,000. The SEC’s complaint charges Zeringue, Roberts, and Adcox with violations of the anti-fraud provisions of the federal securities laws
Zeringue previously pled guilty to criminal charges and has agreed to settle the SEC’s charges by paying over his trading profits of $32,006 and a penalty of $64,012. He will be prohibited from serving as an officer or director of a publicly-traded company for 10 years. The settlement is subject to court approval.
For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, by email at [email protected]. This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute, legal and compliance advice on any specific matter, nor does this message create an attorney-client relationship. Please note that the prior results discussed herein do not guarantee similar outcomes.
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