SEC Obtains Final Judgement Against Thailand-Based Trader Charged with Insider Trading

Litigation Release No. 24654 / October 31, 2019

Securities and Exchange Commission v. Bovorn Rungruangnavarat, Civil Action No. 18cv03196 (N.D. Ill.)

On October 29, 2019, the U.S. District Court for the Northern District of Illinois entered a final consent judgment approving the SEC's settlement with Bovorn Rungruangnavarat, a Thai citizen who allegedly engaged in a scheme to realize illegal gains by trading in advance of the May 2013 announcement that China-based Shuanghui International Holdings (now WH Group) would acquire Smithfield Foods, Inc.

The SEC's action, filed May 4, 2018, charged Bovorn Rungruangnavarat with insider trading in coordination with his brother, Badin Rungruangnavarat. According to the complaint, the two brothers conducted numerous transactions in Smithfield securities after learning of the potential acquisition from a close, personal friend who worked as an investment banker. The SEC previously charged Badin with insider trading in June 2013 and, without admitting or denying the SEC's allegations, Badin settled those charges.

Under the terms of the SEC's settlement with Bovorn, he has consented, without admitting or denying the SEC's allegations, to a judgment enjoining him from future violations of the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and ordering him to pay disgorgement of $274,339.

The SEC's investigation was conducted by Frank D. Goldman and James A. Scoggins of the SEC's Market Abuse Unit in the Denver Regional Office and was supervised by Joseph G. Sansone, Chief of the Market Abuse Unit. The SEC's litigation was led by Mark L. Williams and was supervised by Gregory A. Kasper.