1. Former Banco Santander Analyst Agrees to Settle Insider Trading Charges
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Former Banco Santander Analyst Agrees to Settle
Insider Trading Charges
FOR IMMEDIATE RELEASE
2011-98
Washington, D.C., April 25, 2011 – The Securities and Exchange
Commission today announced that former Banco Santander S.A. analyst
Juan Jose Fernandez Garcia of Madrid, Spain, has agreed to pay more than
$625,000 to settle insider trading charges against him. The SEC accused
Garcia in August 2010 of illegally trading in advance of a corporate takeover
by a company that Santander advised.
The settlement with Garcia requires the approval of U.S. District Judge
Marvin J. Aspen in the Northern District of Illinois.
“This concludes our emergency action against Garcia and demonstrates that
the Commission will act swiftly to prevent foreign citizens who commit fraud
in the U.S. securities markets from reaping the profits of their illegal
activity,” said Daniel M. Hawke, Chief of the Enforcement Division’s Market
Abuse Unit.
The SEC filed an emergency court action on Aug. 20, 2010, against Garcia
and another trader in Spain and obtained an ex parte temporary restraining
order and asset freeze over the funds held in Garcia’s brokerage account at
Interactive Brokers LLC. The SEC alleged that Garcia just days earlier had
traded on the basis of material, nonpublic information about a multi-billion
dollar cash tender offer by BHP Billiton Plc to acquire Potash Corp. of
Saskatchewan Inc. At the time, Garcia was the head of a research arm at
Santander, a Spanish banking group advising BHP on its bid. Garcia
purchased 282 call option contracts for Potash stock in the days leading up
to the public announcement, and immediately sold all of his options
following the announcement for illicit profits of $576,033.
Without admitting or denying the SEC’s allegations, Garcia agreed to the
entry of a final judgment permanently enjoining him from future violations
of Sections 10(b) and 14(e) of the Exchange Act and Exchange Act Rules
10b-5 and 14e-3, and ordering him to pay disgorgement of $576,033 and a
penalty of $50,000.
The SEC’s charges against the other trader, Luis Martin Caro Sanchez,
remain pending.
The SEC litigation is being handled by Jonathan Polish, James Lundy, Frank
Goldman and Dee O’Hair of the Chicago Regional Office. Goldman and
O’Hair work in the Market Abuse Unit.
# # #
For more information about this enforcement action, contact:
Daniel M. Hawke
Chief, Market Abuse Unit, SEC Enforcement Division
(267) 226-7081
http://www.sec.gov/news/press/2011/2011-98.htm[28-12-2011 20:02:34]

2. Former Banco Santander Analyst Agrees to Settle Insider Trading Charges
Timothy L. Warren
Associate Regional Director, Chicago Regional Office
(312) 353-7394
Kathryn A. Pyszka
Assistant Director in SEC’s Chicago Regional Office and Market Abuse Unit
(312) 353-7416
http://www.sec.gov/news/press/2011/2011-98.htm
Home | Previous Page Modified: 04/25/2011
http://www.sec.gov/news/press/2011/2011-98.htm[28-12-2011 20:02:34]