Four Accused of Insider Trading Scheme Involving Anchor Glass
WASHINGTON (AP) _ A former secretary at an investment banking firm and three stockbrokers were accused Thursday of an illegal insider trading scheme involving a Mexican company’s 1989 acquisition of Anchor Glass Container Corp.
In a civil lawsuit filed at federal court in St. Louis, the Securities and Exchange Commission accused Ann E. Hiles, of Chesterfield, Mo., of taking confidential information about the proposed takeover from her employer and passing it on to the others, whose customers made $350,000 in trading profits.
The SEC said Ms. Hiles was a secretary in the Chicago office of Lazard Freres, which was serving as financial adviser to a subsidiary of Vitro S.A., a Mexican glass and plastic container maker that later acquired Anchor.
The SEC charged that Ms. Hiles tipped off a stockbroker friend, Thomas Greulich, also of Chesterfield, about the Anchor acquisition. Greulich in turn alerted two other stockbrokers, Vincent Mayer of St. Louis and Robert McMahon of Fort Myers, Fla.
All three brokers allegedly told numerous clients to buy Anchor stock before the merger was announced and sell it for an aggregate illegal trading profit of more than $350,000 when the stock price shot up after the deal was made public in August 1989.
Except for Mayer, who bought a small number of shares, neither Ms. Hiles nor the brokers were accused of trading Anchor stock for their own profit.
The SEC is seeking a court order requiring the four to pay back their customers’ profits plus unspecified fines.