SEC Freezes Assets of Trader for Insider Trading Ahead of Smithfield Foods Acquisition Announcement

June 6, 2013

The SEC announced an emergency court order to freeze the assets of Badin Rungruangnavarat, a trader based in Thailand, who made more than $3 million in profits by trading in advance of a recent announcement that Smithfield Foods agreed to a multi-million dollar acquisition by China-based Shuanghui International Holdings.  The SEC alleges that the trader purchased thousands of out-of-the-money Smithfield call options and single-stock futures contracts based on material, non-public information about the potential acquisition. After profiting from this trading, Rungruangnavarat sought to withdraw more than $3 million from his account. The emergency court order freezes the proceeds of Rungruangnavarat’s securities purchases, grants expedited discovery, and prohibits the trader from destroying evidence. In addition to the emergency relief, the SEC is seeking disgorgement of ill-gotten gains with prejudgment interest, a financial penalty, and a permanent injunction.
Click here to access a press release and the Complaint.


Investment Advisers