Saturday, November 7, 2009

California Broker Barred from Securities Industry for Insider Trading

A former employee of Piper Jaffray & Co., Abhishek Uppal, has been barred from the securities industry for engaging in insider trading. The Financial Industry Regulatory Authority (FINRA) made this decision following actions taken by Uppal in June of this year.

Uppal, a resident of the San Francisco area, purchased shares of SoftBrands days before the company announced it was being acquired by Golden Gate Capital and Infor Global Solutions. The resulting announcement of acquisition resulted in a doubling of SoftBrands stock price. Uppal made his purchase while he was in possession of material, nonpublic information about the pending SoftBrand acquisition. The business day following the announcement of acquisition, Uppal sold all shares of SoftBrands, therefore netting a profit.

To mask his actions from his employer, Uppal used an undisclosed securities account he held at another broker-dealer to conduct his illegal activities.

Abhishnek Uppal has neither affirmed nor denied the charges made against him, but nevertheless, is bound by the terms of FINRA’s decision.

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