Jan 14 A former Dow Chemical Co
executive agreed to pay a $367,250 fine and be banned from
serving as an officer or director of a public company to settle
civil charges of insider trading over the 2008 takeover of Rohm
and Haas Co.
Raymond James Financial Inc and one of its former
brokers also agreed to settle related charges by the U.S.
Securities and Exchange Commission. The regulator announced the
settlements on Tuesday.
Mack Murrell, formerly Dow's vice president of information
systems, had been accused of tipping his friend David Teekell
about the planned $15.7 billion purchase of Rohm, a specialty
chemicals company, before it was announced on July 10, 2008.
Murrell, of Saginaw, Michigan, learned about the transaction
from his live-in girlfriend, who he later married, and who had
been an assistant to Dow's chief financial officer, according to
The regulator said Teekell and Charles Adams, his broker at
Raymond James, then traded on the tips from Murrell, and that
some profits went to Adams' customers. More than $1 million of
illegal profit was realized, the SEC said.
In settlements approved on Monday by U.S. District Judge
Thomas Ludington in Bay City, Michigan, Raymond James agreed to
pay about $382,000 representing ill-gotten gains and interest,
and Adams agreed to pay nearly $185,000, including a $107,046
fine. Murrell's settlement was also approved by Ludington.
Teekell previously agreed to pay about $1.17 million,
including a $534,526 fine, to settle with the SEC.
None of the defendants admitted wrongdoing.
Lawyers for Murrell and Adams did not immediately respond on
Tuesday to requests for comment. Raymond James did not
immediately respond to a request for comment.
Raymond James is based in St. Petersburg, Florida. Dow is
based in Midland, Michigan, and was not charged by the SEC.
The case is SEC v. Murrell et al, U.S. District Court,
Eastern District of Michigan, 13-12856.