U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23571 / June 16, 2016
Securities and Exchange Commission v. Christopher Salis, Douglas Miller, Edward Miller, and Barrett Biehl, Civil Action No. 2:16-cv-00231 (N.D. In.)
Software Executive and Three Friends Charged with Insider Trading
The Securities and Exchange Commission today announced insider trading charges against a former software company executive and three close friends who made more than a half-million dollars based on his illegal tip about an upcoming merger.
The SEC alleges that Christopher Salis, then a global vice president at SAP America, received thousands of dollars in kickbacks for tipping Douglas Miller in advance of SAP's impending acquisition of Concur Technologies. Miller tipped his brother Edward Miller and mutual friend Barrett Biehl as they rushed to open online brokerage accounts and make risky, short-term trades in Concur call options so they could profit substantially when the deal was publicly announced.
According to the SEC's complaint filed in federal court in Indiana:
The SEC also has linked Salis and Douglas Miller to suspicious trades in 2007 that were made in advance of a tender offer for a company called Business Objects, where Salis worked at the time. Salis and Miller are charged with this additional count of insider trading in the SEC's complaint, which alleges illicit profits of more than $42,000.
The SEC's complaint charges Salis, Douglas Miller, Edward Miller, and Biehl with violating Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934. Salis and Douglas Miller also allegedly violated Section 14(e) and Rule 14e-3 of the Exchange Act.
The SEC's investigation was conducted by Brianna Ripa, Amy Friedman, Adam Gottlieb, and Carolyn Welshhans with assistance from John Rymas in the Market Abuse Unit's Analysis & Detection Center. The case has been supervised by Mr. Friestad and Robert A. Cohen, co-chief of the Market Abuse Unit. The SEC's litigation will be led by Kevin C. Lombardi and Cheryl Crumpton. The SEC appreciates the assistance of the Financial Industry Regulatory Authority.