U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 21360 / January 5, 2010

Securities and Exchange Commission v. Reza Saleh and Amir Saleh, Case No. 3:09-CV-01778-M (BMGL) (N.D. TX. filed September 23, 2009)

Perot Systems Insider Trader Agrees to Return $8.6 Million In Illicit Profits

The Securities and Exchange Commission today announced that a former Perot family companies employee it charged with insider trading in September has agreed to return all of his illicit profits – a total of more than $8.6 million.

Just two days after Dell Inc. announced plans to acquire Perot Systems, the SEC filed suit against Reza Saleh of Richardson, Texas, with insider trading, alleging that he illegally traded in Perot Systems call options after learning about the merger before it was announced. The SEC obtained a court order at that time freezing all of Saleh’s trading profits.

Under the terms of the settlement filed today in federal court in Dallas, the SEC plans to ask the court to appoint a third party to recommend a distribution plan for Saleh’s illegal profits. The SEC also will ask the court to impose a financial penalty against Saleh. The settlement is subject to court approval.

Without admitting or denying the allegations in the SEC’s complaint, Saleh agreed to be permanently enjoined from violations of Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder. Saleh further agreed to an SEC administrative order, pursuant to Section 203(f) of the Investment Advisers Act of 1940, barring him from future association with any investment adviser.

The SEC appreciates the ongoing assistance of the Chicago Board Options Exchange, Options Regulatory Surveillance Authority, the Nasdaq OMX and the Financial Industry Regulatory Authority (FINRA) in this matter.

 
http://www.sec.gov/litigation/litreleases/2010/lr21360.htm

Last modified: 1/05/2010