Brothers to pay $5 mln to settle Heinz insider-trading charges
WASHINGTON Oct 10 (Reuters) - Two brothers from Brazil will pay $5 million to settle civil charges that they reaped $1.8 million in illegal profits by trading ahead of an announcement that Berkshire Hathaway Inc and 3G Capital planned to acquire ketchup maker H.J. Heinz Co, U.S. regulators said Thursday.
Rodrigo Terpins and his brother Michael neither admitted nor denied the Securities and Exchange Commission's charges, which allege that Rodrigo Terpins placed the illegal trades while vacationing at Walt Disney World after his brother got a tip about the acquisition.
Earlier this year, the SEC froze their assets in a Swiss-based account after detecting suspicious options trading before the $28 billion deal was announced. At the time, their identities were unknown.
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