Two Brazilian brothers agreed to pay USD 4.8 million to settle federal civil charges of insider trading ahead of the announcement of a plan to acquire H.J. Heinz Co. By Warren Buffett's Berkshire Hathaway and a private equity firm.
The Securities and Exchange Commission announced the settlement with Michel and Rodrigo Terpins today. The agency alleged in a lawsuit that they used confidential information about the Heinz deal to buy options on Heinz stock and reap a profit of USD 1.8 million afterward.
The Terpins agreed to pay USD 3 million in penalties and return the USD 1.8 million in alleged illegal profits. They neither admitted nor denied wrongdoing.
The deal to acquire the ketchup maker for USD 23.3 billion was announced Feb. 14, sending its shares up 20 percent to close at USD 72.50.
