NEW YORK – The Securities and Exchange Commission has charged two men with insider trading after they learned that hedge fund manager Bill Ackman was betting against Herbalife Ltd.'s stock.
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The SEC says Filip Szymik was told by his roommate, then an analyst at Ackman's hedge fund, Pershing Square Capital Management, that Ackman was going to announce a negative view of Herbalife Ltd. Szymik then told another friend, Jordan Peixoto, according to the SEC.
The SEC says Peixoto bet against Herbalife stock a day before Ackman made the announcement in December 2012, earning him $47,100.
The SEC settled with Szymik, who did not make any Herbalife trades. He will pay a $47,100 penalty. Szymik did not admit any wrongdoing.
A lawyer for Peixoto says he will fight the allegations.