Ex-Diebold sales rep charged with insider trading
DETROIT, March 13 (Reuters) - A former Diebold Inc (DBD.N) sales representative is facing insider trading charges that he profited from nonpublic information about revenue and order shortfalls at the No. 2 maker of automated teller machines, the U.S. Securities and Exchange Commission said on Thursday.
The SEC alleged that Robert Cole made more than $500,000 in illegal profits after learning from his manager that revenues and orders at Diebold's North American regional bank business were significantly below target.
The SEC said it is seeking disgorgement of illicit trading profits and civil monetary penalties against Cole.
An attorney for Cole did not immediately return a call seeking comment.
The SEC said Cole learned of the financial information in September 2005 and quickly began buying hundreds of soon-to-expire Diebold put option contracts at a cost of $70,110.
One day after Cole completed buying the put option contracts, Diebold announced it was lowering its earnings forecast, the agency said.
The SEC said Cole immediately sold the Diebold put option contracts for $579,190, a 700 percent return.
Diebold last week said it rejected an unsolicited $2.64 billion takeover offer from diversified U.S. manufacturer United Technologies Corp (UTX.N), saying the bid undervalued the company. (Reporting by Karey Wutkowski, editing by Gerald E. McCormick)
