U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 22905 / January 14, 2014
Securities and Exchange Commission v. Waldyr Da Silva Prado Neto, Civil Action No. 12-CIV- 7094
Former Stockbroker Ordered to Pay $5.6 Million for Insider Trader in Burger King Stock
The Securities and Exchange Commission obtained a final judgment against a former registered representative who misappropriated material nonpublic information from his customer and used it to trade Burger King Holding, Inc.'s ("Burger King") securities and tip others before the company's September 2, 2010 announcement that it was being acquired by a New York private equity firm.
On January 7, 2014, the SEC obtained a final judgment against Waldyr Da Silva Prado Neto ("Prado"), a citizen of Brazil formerly employed by Wells Fargo Advisors, LLC in Miami. Prado learned about the impending acquisition from one of his customers who invested in a fund managed by the private equity firm that was used to acquire Burger King. Prado misused the confidential information to illegally trade in Burger King securities for $175,000 in illicit profits, and he tipped others living in Brazil and elsewhere.
For further information see Litigation Release Nos. 22486 (Sept. 21, 2012) and 22554 (Nov. 30, 2012).