The SEC filed an amended complaint naming James Shaoul as an additional defendant in an insider trading case the agency filed earlier this year against his brother and another trader who allegedly profited by more than $925,000 trading in advance of a merger between technology companies Intel Corp. and Mobileye N.V.
The SEC’s amended complaint alleges that James Shaoul has professional and personal relationships with Mobileye founders who directly participated in negotiations that resulted in Intel’s tender offer. Mobileye is a software and technology developer for Advanced Driver Assistance Systems used for autonomous driving.
According to the SEC’s amended complaint, James Shaoul resides in Israel where Mobileye’s principal offices are located. Shaoul is a physician specializing in nonsurgical cosmetic procedures, including botox and laser hair removal. A Mobileye director and his wife have received treatment at Shaoul’s clinic.
Shaoul allegedly tipped his brother Roger Shaoul with nonpublic information about the impending merger prior to the public announcement, and gave him detailed directions to buy specific Mobileye options. The directions allegedly included specific purchase prices, strike prices, and expiration dates as well as a price per share discussed in confidential Mobileye-Intel discussions and an estimated date range for a public announcement.
Roger Shaoul allegedly then tipped Lawrence Cluff Jr. with nonpublic information about the tender offer. All of the suspicious trading allegedly occurred in two accounts held in Cluff’s name, including an account that had been dormant since 2011 before Cluff purchased Mobileye stock on Jan. 30, 2017.
Roger Shaoul and Cluff reside in Virginia, according to the SEC’s complaint. The SEC filed the initial complaint against them in April 2017.
The SEC’s amended complaint charges all three defendants with violating the Securities Exchange Act of 1934 and seeks a final judgment ordering Roger Shaoul and Cluff to disgorge their allegedly ill-gotten gains with interest and ordering all defendants to pay penalties and be permanently enjoined from future violations.
Braskem Agrees to Pay Investors $10 Million for Role in Petrobras Corruption Scandal
Petrochemical giant Braskem S.A. will pay U.S. investors $10 million for concealing the company’s role in the corruption scandal centered around Petrobras, Brazil’s state-owned oil company, according to an press release from Cohen Milstein Sellers & Toll PLLC.
Shareholders had filed a class action suit claiming Braskem defrauded investors by hiding the role bribery played in keeping the price of materials low, creating an artificially inflated stock value.
“Braskem investors were sadly the victims of a shadowy bribery scheme and a scandal that has engulfed Brazil and reverberated worldwide,” said Steven J. Toll, co-chair of Cohen Milstein’s Securities Fraud and Investor Protection practice and lead counsel for the plaintiff class, in a statement. “This settlement not only brings financial relief to our clients, but is a victory for all who have been hurt by Braskem, Petrobras and the other participants in an unprecedented system of political and corporate corruption.”