SEC Files Insider Trading Action Against New Jersey Exec
NEW YORK (AP) _ The head of a New Jersey firm settled insider trading civil charges Thursday that accused him of passing confidential information about a pending tender offer to a relative who made more than $240,000 in profits.
In settling the Securities and Exchange Commission civil action, Armin Kaufman, president of Armin Corp., of Jersey City, N.J., agreed to pay back $243,863 in alleged illegal profits.
Under terms of an order signed by U.S. District Judge Milton Pollack, Kaufman, 62, of Brooklyn, neither admitted nor denied the complaint’s allegations.
Armin Corp. is a wholly owned subsidiary of Tyco Laboratories Inc., an Exeter, N.H.-based industrial products manufacturer.
The SEC complaint accused Kaufman of tipping an unidentified relative about Tyco’s planned acquisition of Atcor Inc., a Chicago-based manufacturer of metal pipe, conduits and outdoor grills.
Federal law forbids corporate executives, investment bankers and others with access to non-public information from using it or passing it to others to trade in securities.
According to the SEC complaint, between June 26 and July 6, 1987, Kaufman’s relative bought 27,000 shares of Atcor common stock for $12.75 to $14.25 a share.
Atcor and Tyco announced on July 8 Tyco’s tender offer for all Atcor shares at $23 per share, about $9 above the then-market price.
On July 9 and 10, according to the complaint, Kaufman’s relative sold all 27,000 shares at more than $22 a share for a profit of $243,863.