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FBN’s Adam Shapiro on the SEC freezing the accounts of traders accused of reaping illegal profits from CNOOC’s acquisition of Nexen.
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I'm -- -- we're gonna start this hour with some breaking news the US attorney's office here in Manhattan is once again going after insider trading on Wall Street.
The investigation is going international this time let's go right to Adam Shapiro with more on this breaking story -- -- Melissa at this point it's an SEC action but we'd be intense pressure from the US attorney's office.
In Manhattan you gotta wonder if there might be more coming down the -- but here's what's happened at this hour within the last ten minutes the SEC.
Obtained an emergency court ordered a freeze the assets of traders who were using accounts in Hong Kong and Singapore.
To reap what the SEC says was more than thirteen million bucks an illegal profits.
By trading on inside information prior to that Blockbuster announcement that we got on Monday.
That -- not that's the giant state owned Chinese oil company was purchasing the Canadian based -- -- corporation.
Wise it's important for an investor in the United States.
Next -- has drilling rights here in the US and there has to be approval through US authorities for this deal to go through this is not the kind of thing that's gonna make that process easier now -- rebuke from the actual complaint because although they are identifying foreign traders like well advantage limited which is at a Hong Kong.
You've got this -- complaint from the SEC.
Saying that on information the defendants are either located or trading through accounts in Hong Kong and or Singapore means there either over there possibly -- -- New York as well and then this third paragraph from the complaint where it says.
Nearly all of the defendants purchased next isn't stock acquired during the last seven trading days.
Before the big announcement on the 23 and he -- used for such -- -- purchases had either no history.
Or extremely limited history of buying shares of necks and prior to July of 2012.
This is going to be a huge story over the weekend well advantage owner is the controlling shareholder of Hong Kong based company that engages in significant business activities.
With -- not.
So this is gonna play out over the weekend probably pick up the story again on Monday.
What happens with the regulatory process would it go forward because -- in the company that would be purchased.
Has drilling rights in United States and who else might be named as the SEC goes forward and will -- US attorney's office.
Jump in as -- -- they have been on the lead of insider trading here in the United States as we've understood it.
-- to Blockbuster story Adam thank you so much.
