SEC charges eight in insider-trading case

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SEC charges eight in insider-trading case
from MarketWatch.com - MarketPulse
WASHINGTON (MarketWatch) -- The Securities and Exchange Commission said it's charged eight individuals living in the Griffin, Ga., area for participating in an insider trading ring that generated more than $500,000 in illegal profits based information about Chattem's purchase by Sanofi . The SEC alleges that local accountant Thomas D. Melvin, Jr. exploited confidential information from a client who was on the board of directors at Chattem Inc. Melvin allegedly breached his duty of confidentiality to the client and proceeded to tip four of his friends and associates about the likely increase in the company's stock price, the SEC said. Four of the eight settled.