The US Securities and Exchange Commission (SEC) has imposed a penalty of $5.1m against Brazilian ex-banker Igor Cornelsen and his firm Bainbridge Group for insider trading in Burger King securities.
As per SEC’s complaint filed in federal court in Manhattan, Cornelsen and his firm collected illegitimate profits of over $1.68m by trading in the securities, before its acquisition by a New York private equity firm in September 2010.
The accused banker obtained secret information from his broker Waldyr Da Silva Prado Neto, while Prado was stealing the same from another Wells Fargo brokerage customer involved in the Burger King deal.
In order to settle the aforesaid charges, Cornelsen and Bainbridge Group have agreed to pay over $5.1m, which will be processed after receiving court approval.
With instructions to avoid future federal securities laws violations, the proposed final judgment has asked to collectively and separately pay $1,681,090 in disgorgement and $136,620.96 in prejudgment interest, while Cornelsen has been ordered to pay $3,362,180.