The SEC obtained leave to freeze assets on 20 September 2012 to prevent a stockbroker from transferring his assets outside U.S. jurisdiction. From 17 May 2010 to 1 September 2010, the stockbroker allegedly used non-public information from a customer and engaged in insider trading ahead of Burger King’s announcement that it was being acquired by a New York private equity firm.
The stockbroker misused the confidential information to illegally trade in Burger King stock for USD 175,000 in illicit profits, and he tipped, according to the SEC's complaint, at least four other people who also traded on the non-public information. The customer made additional purchases in Burger King call options. The customer’s total insider trading profits amounted to more than USD 1.68 million.
The SEC’s complaint against the stockbroker seeks a permanent injunction for violations of Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3. According to the SEC the stockbroker knew that the confidential information regarding the impending Burger King acquisitions was material and non-public. The SEC’s investigation continues.