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SEC freezes brokerage accounts behind alleged insider trading

Published 04/14/2017, 11:36 AM
Updated 04/14/2017, 11:40 AM
© Reuters. The seal of the U.S. Securities and Exchange Commission  on the wall at SEC headquarters in Washington
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WASHINGTON (Reuters) - The Securities and Exchange Commission said on Friday it had frozen assets in two brokerage accounts used last week to reap more than $1 million in alleged insider trading profits in connection with a merger announcement by Liberty Interactive Corp (NASDAQ:QVCA) and General Communication Inc.

The agency said in a statement the traders, currently unknown, allegedly used foreign brokerage accounts in Britain and Lebanon to purchase call option contracts through U.S.-based brokerages and on U.S.-based exchanges in the days leading up to the announcement of the acquisition.

© Reuters. The seal of the U.S. Securities and Exchange Commission  on the wall at SEC headquarters in Washington

Liberty Interactive announced a deal on April 4 that included the purchase of General Communication for $1.12 billion.

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