The Securities and Exchange Commission charged four executives at a Louisville based steel processing company and four of their family and friends with illegal insider trading in advance of the company’s acquisition.
The SEC alleges that Patrick Carroll, William “Tad” Carroll, David Mark Calcutt and David Stitt - who are vice presidents of sales at Steel Technologies - traded based on confidential information about their company’s acquisition by Mitsui & Co (USA) Inc.
Three of the four executives illegally tipped family members or friends.
The ring of eight traders together purchased USD 578,000 of Steel Technologies stock in the month prior to the public announcement of the acquisition and made USD 320,000 in illegal profits.
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