Jonathan Hollander, a former SAC Capital Advisors LP analyst, agreed pay more than $220,000 to settle U.S. Securities and Exchange Commission claims that he traded on inside information about a pending takeover of the Albertson grocery chain, his lawyer said.
The SEC alleged that Hollander tipped others about the acquisition and that he and others earned $95,807 in illegal profits. The settlement must be approved by U.S. District Judge Richard Sullivan in New York, said Aitan Goelman, a lawyer for Hollander.
“Jonathan has decided to settle this matter rather than engage in costly and protracted litigation with the SEC,” Goelman said yesterday in a phone interview. “He is gratified to have the matter behind him and looks forward to moving on with his successful principal-investing and strategic-consulting business as well as his active philanthropic endeavors.”
Hollander agreed to settle without admitting or denying the allegations, the SEC said in a statement. The SEC ordered him to pay $95,807, a civil penalty of $95,807 and prejudgment interest, Goelman said.
The SEC said that in January 2006, while Hollander was still employed as an analyst for an unnamed investment adviser, he traded in Albertson LLC’s securities on the basis of a material, non-public tip regarding the pending corporate acquisition of the company before the official Jan. 23, 2006, announcement.
In the commission’s complaint, Stamford, Connecticut-based SAC wasn’t named.
The case is SEC v. Hollander, 11-cv-O2885, U.S. District Court, Southern District of New York (Manhattan).
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