NEW YORK – The SEC (Securities and Exchange Commission), a federal agency in the U.S. has charged five doctors including an Indo-American in an insider trading case.
The SEC said in a statement that the doctors got some confidential information about an estimated acquisition of ACAP (American Physicians Capital Inc), a medical professional liability insurance company and the doctors used the details of the acquisition for insider trading in the company shares.
Apparao Mukkamala, one among the five doctors who also served as the chairman of ACAP got to know about the acquisition through board meetings.”Mukkamala in turn shared the non-public information with fellow physicians and friends Suresh Anne, Jitendra Prasad Katneni and Rao A K Yalamanchili as well as his brother-in-law Mallikarjunarao Anne.
“The five physicians each purchased ACAP stock based on confidential information about the impending sale in the months leading up to a public announcement. Collectively, they made more than $ 623,000 in illegal profits on their ACAP stock following the announcement,” the regulator said., reports PTI.
The doctors have neither admitted nor denied the charges, but have agreed to pay an amount of $ 1.9 million in order to settle the case. Mukkamala has agreed to pay $ 631,000, Mallikarjunarao Anne has agreed to pay $ 253,000, Suresh Anne about $697,000, Katneni nearly $ 22,000 and Yalamanchili $ 298,000.
