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U.S. Securities and Exchange Commission

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 22659 / March 22, 2013

Securities and Exchange Commission v. Juan Carlos Bertini, Civil Action No. CV-13-01292

SEC Charges Del Monte Foods Company Employee with Insider Trading

The Securities and Exchange Commission today charged Juan Carlos Bertini, a vice president of finance at Del Monte Foods Company ("Del Monte"), with insider trading for purchasing stock in advance of Del Monte's announcement that it would be acquired by an investor group.

According to the SEC's complaint filed in the U.S. District Court for the Northern District of California, Bertini worked on the buyout transaction for Del Monte and obtained material nonpublic information regarding the investor group's pending offer. Bertini then used that information to acquire 8,000 shares of Del Monte stock in his mother's brokerage account and reap illicit profits of approximately $16,035.

The SEC alleges that Bertini caused false information to be supplied to the Financial Industry Regulatory Authority ("FINRA"), which requested information about the trades from Del Monte. In the course of FINRA's investigation, Bertini provided inaccurate information regarding his involvement in the trades to Del Monte's counsel. He told counsel that he learned of his mother's purchases of Del Monte shares after she purchased them and after the acquisition was announced in late November 2010. Bertini also told counsel that his mother purchased the Del Monte shares after she read articles suggesting that Del Monte was going to be acquired. In truth, Bertini was responsible for the trading that had occurred in his mother's brokerage account.

Without admitting or denying the SEC's allegations, Bertini agreed to settle the case against him. The settlement is pending final approval by the court. Specifically, Bertini consented to the entry of a final judgment permanently enjoining him from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder; requiring him to pay disgorgement of $16,035, the amount of his ill-gotten gains, plus prejudgment interest of $961, and a civil penalty of $32,070; and prohibiting him from serving as an officer and director of a public company for a period of five years.

The SEC thanks FINRA's Office of Fraud Detection and Market Intelligence for its assistance in this matter.

SEC Complaint

 

http://www.sec.gov/litigation/litreleases/2013/lr22659.htm


Modified: 3/22/2013