8:42 AM Fri, Jul 24, 2009 | Permalink
By Business staff  Email this author | Email this entry |
Bogus takeover bids for Providence-based Textron Inc. and Harman International Industries Inc. reaped more than $5 million for a Kuwait-based financier and firms who placed "highly profitable and suspicious'' bets beforehand, U.S. regulators said in a lawsuit targeting the traders.
The Securities and Exchange Commission sued United Gulf Bank BSC, Kipco Asset Management Co., Kuwait resident Hazem Khalid Al-Braikan and the firm he heads, Al-Raya Investment Co., for bets they allegedly placed before a July 20 media report that an investor group planned to buy Harman. Al-Raya and Kipco also profited on trades when a Kuwaiti newspaper reported a bid for Textron, the SEC said. "No such offer existed,'' the agency wrote in the complaint.
"This case exemplifies the SEC's swift and surgical investigative skills and our determination to follow the trail wherever it leads,'' SEC Enforcement Director Robert Khuzami said in a statement.
New comments
New photos
New posts
Projo blogs
Archives
Leave a comment