SEC settles insider trading case over ISE merger

NEW YORK, Aug 20 (Reuters) - The U.S. Securities and Exchange Commission has settled an insider trading case with a New York financial consultant concerning the 2007 takeover of International Securities Exchange Holdings Inc.

Mark Larson, a partner of Marshall Tucker & Associates LLC in New York, was accused of making $31,000 of illegal profits after learning from his colleague John Marshall, who was also ISE vice chairman, about the exchange's confidential merger talks with Eurex Frankfurt AG, partially owned by Deutsche Boerse AG DB1Gn.DE.

In a brief order on Thursday, U.S. District Judge George Daniels said the SEC and Larson had reached a “good faith settlement.” The judge dismissed the SEC’s claims against Larson with prejudice, meaning they cannot be brought again.

The $2.8 billion ICE takeover was announced in April 2007. A judge sentenced Marshall to 18 months in prison in December 2008 for his role.

Larson could not immediately be reached for comment. An SEC spokesman did not immediately return a call for comment.

The case is SEC v. Marshall et al, U.S. District Court, Southern District of New York (Manhattan), No. 08-2527. (Reporting by Jonathan Stempel, editing by Leslie Gevirtz)