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SEC charges Wells Fargo banker, 9 others in insider-trading case
December 5, 2012 / 9:30 PM / 5 years ago

SEC charges Wells Fargo banker, 9 others in insider-trading case

WASHINGTON, Dec 5 (Reuters) - U.S. securities regulators on Wednesday charged a Wells Fargo investment banker and nine others for their alleged role in an insider-trading ring that earned more than $11 million by trading on tips about impending mergers.

The Securities and Exchange Commission said that John Femenia, 30, misused his position at a unit of Wells Fargo to obtain material, non-public information about four different mergers involving firm clients.

The SEC said Femenia then tipped his friend, Shawn Hegedus, a registered broker-dealer. The SEC says the two then tipped other friends, resulting in an insider-trading ring that spread across five states.

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