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U.S. Securities and Exchange Commission

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 23877 / July 12, 2017

Securities and Exchange Commission v. Victory Ho, No. 17-cv-895 (W.D. La. filed July 11, 2017)

SEC Charges Owner of Convenience Store in Louisiana with Insider Trading

The Securities and Exchange Commission today announced fraud charges against Victory Ho for insider trading in the securities of The Shaw Group, Inc. (Shaw), a Louisiana-based energy construction company, ahead of a public announcement on July 30, 2012 that Shaw was going to be acquired by Chicago Bridge & Iron Company N.V.

The SEC's complaint, filed in the U.S. District Court for the Western District of Louisiana, alleges that during July of 2012, Victory Ho obtained confidential non-public information about the impending Shaw merger. Ho then used all of the money in a newly-opened brokerage account - about $8000 - to purchase 296 Shaw short term call options on Friday, July 27, 2012, the last trading day before the public announcement of the merger. Prior to purchasing these options, Ho had multiple communications with two individuals who had personal relationships with a Shaw employee who had information concerning the merger. The SEC further alleges that Ho sold the options shortly after the announcement of the acquisition for a profit of approximately $295,000.

The SEC's complaint charges Ho with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and seeks a final judgment imposing a permanent injunction, disgorgement of his profits, pre-judgment interest and a civil penalty.

The SEC's continuing investigation is being conducted by Louis J. Gicale, Jr. and Ashley Dolan, with the assistance of trial counsel Derek Bentsen, and is being supervised by Melissa A. Robertson.

The SEC appreciates the assistance of the Federal Bureau of Investigation, the U.S. Attorney's Office for the Middle and Western Districts of Louisiana, the U.S. Secret Service, the Internal Revenue Service Criminal Investigation, the Options Regulatory Surveillance Authority, and the Financial Industry Regulatory Authority.

SEC Complaint

 

https://www.sec.gov/litigation/litreleases/2017/lr23877.htm


Modified: 07/12/2017