| NEW YORK, April 15
NEW YORK, April 15 U.S. securities regulators on
Monday charged a Denver businessman with reaping "substantial"
profits using inside information from the former chief executive
of Delta Petroleum Corp about an impending investment in the
Scott Reiman, founder and president of investment firm
Hexagon Inc, agreed to pay nearly $900,000 to settle the civil
case brought by the Securities and Exchange Commission, the
The case against Reiman comes five months after the SEC
charged Delta's former chief executive, Roger Parker, with
leaking the news that Beverly Hills-based private investment
firm Tracinda Corp had agreed to buy a 35 percent stake in Delta
for $684 million.
In October, the SEC also charged Parker's friend, insurance
executive Michael Van Gilder, with trading based on tips he
received from Parker.
Van Gilder is also facing a parallel criminal case. He has
pleaded not guilty to five counts of insider trading.
Attorneys for Parker and Van Gilder were not immediately
available for comment on Monday evening.
As part of his settlement, Reiman neither admitted nor
denied wrongdoing. He will be barred from the securities
industry and from acting as an officer or a director of a
publicly traded company for a minimum of five years.
"It takes time and money to fight the government, and that
detracts from the other goals that Scott wanted to accomplish,"
said his lawyer, Cliff Stricklin. "He decided to use his energy
in a positive way instead of getting involved in a lengthy
He agreed to pay $398,000 in disgorgement, $93,567 in
interest and $398,000 in penalties.
According to the SEC, Reiman bought Delta stock or option
contracts on three occasions in late 2007, each time shortly
after speaking with Parker.
In November, the Van Gilder Insurance Corp announced that
Van Gilder was taking an "indefinite leave of absence." He also
stepped down as CEO of the company.