"

Estimated reading time: 1 minute, 44 seconds

Former Deloitte Partner Faces Insider Charges

A former Deloitte partner and his wife have been charged by the SEC with insider trading that allegedly yielded $3 million for them and the wife's sister and her husband. The latter two, both residents of England along with three other British residents, face similar charges in that country.
San Francisco resident Arnold McClellan and his wife Annabel were charged with providing advance notice of at least seven acquisitions planned by Deloitte clients to English residents James Sanders and his wife, Miranda, who is Annabel McClellan's sister. Based on tips, Sanders took financial positions in companies that were targets of acquisitions by Arnold McClellan's clients.

About half of the $3 million was funneled back to Annabel McClellan. The schemes also netted another $20 million for Sanders and his firm's clients. Published reports said Annabel McClellan was arrested Tuesday on a charge of obstructing justice. The couple's attorneys were quoted as denying the charges and stating they would contest them vigorously and that McClellan did not trade based on insider information nor did he improperly leak information about trades.

British authorities charged Sanders, co-owner of Blue Index, and Miranda Sanders, with seven counts of insider trading. Jame Sanders also faces three counts of illegally disclosing inside information. James Swallow a co-owner and director of Blue Index; Christopher Hossain, a senior trader at the firm; and Adam Buck a former Blue Index employee, also face insider trading charges.

The trades are alleged to have taken place between October 2006 and February 2008. The SEC said Arnold McClelland, then head of one of Deloitte's regional mergers and acquisition teams, had access to highly confidential information and provided tax and other advice to clients that were considering purchasing other companies.

The SEC said that based on information provided by the McClellans, James Sanders purchased derivative financial instruments that are pegged to the price of the underlying U.S. stock. The transactions in which McClellan allegedly leaked information included the 2007 acquisition of Kronos by a private equity firm and Microsoft's purchase of aQuantive that same year. Also involved was the 2008 acquisition of Getty Images by a private equity firm.


Read 6243 times
Rate this item
(0 votes)

Visit other PMG Sites:

Template Settings

Color

For each color, the params below will give default values
Tomato Green Blue Cyan Dark_Red Dark_Blue

Body

Background Color
Text Color

Header

Background Color

Footer

Select menu
Google Font
Body Font-size
Body Font-family
Direction
PMG360 is committed to protecting the privacy of the personal data we collect from our subscribers/agents/customers/exhibitors and sponsors. On May 25th, the European's GDPR policy will be enforced. Nothing is changing about your current settings or how your information is processed, however, we have made a few changes. We have updated our Privacy Policy and Cookie Policy to make it easier for you to understand what information we collect, how and why we collect it.