U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23215 / March 6, 2015
Securities and Exchange Commission v. Zeringue, et al., Civil Action No. 3:15-cv-00405 (W.D. Louisiana, amended complaint filed March 5, 2015)
SEC Charges a Third Trader in Louisiana-Based Insider Trading Case
The Securities and Exchange Commission yesterday added Billy Joe Adcox, Jr. of Ruston, Louisiana to a civil injunctive action in the United States District Court for the Western District of Louisiana alleging that Adcox, Scott Zeringue and Jesse Roberts, III engaged in insider trading in the securities of The Shaw Group, Inc. ("Shaw") ahead of a public announcement that Shaw was going to be acquired by Chicago Bridge & Iron Company N.V. ("CBI").
The SEC alleges that Adcox was tipped by his long-time friend, Jesse Roberts, III, also of Ruston, Louisiana. According to the SEC, Adcox knew Roberts obtained the confidential information about the impending merger from Roberts' brother-in-law, Zeringue, a Shaw insider. Adcox and his relative allegedly bought Shaw stock based on the tip and, about two weeks later, sold the stock for a profit of over $111,000. Adcox's relative also tipped a third unnamed individual, who made about $43,000.
The SEC's charges against Adcox were added to a civil complaint filed last week against Zeringue and Roberts, alleging that Zeringue made insider trading profits of over $30,000 and Roberts netted profits of over $765,000. The SEC's complaint charges Zeringue, Roberts, and Adcox with violations of the antifraud provisions of the federal securities laws
Zeringue previously pled guilty to criminal charges and has agreed to settle the SEC's charges by paying over his trading profits of $32,006 and a penalty of $64,012. He will be prohibited from serving as an officer or director of a publicly-traded company for 10 years. The settlement is subject to court approval.
The SEC's continuing investigation is being conducted by Louis J. Gicale Jr. and Roger Paszamant under the supervision of Melissa A. Robertson. The SEC's litigation against Roberts and Adcox will be led by Derek Bentsen. The SEC appreciates the assistance of the Federal Bureau of Investigation and the U.S. Attorney's Office for the Middle District of Louisiana as well as the U.S. Secret Service, Internal Revenue Service Criminal Investigation, Options Regulatory Surveillance Authority, and Financial Industry Regulatory Authority.
Link to related litigation release: http://www.sec.gov/litigation/litreleases/2015/lr23202.htm