Securities Litigation Partner Discusses SEC Investigation of Suspicious Traders

Commercial Dispute Resolution | October.11.2013

Securities litigation and regulatory enforcement partner Ken Herzinger was interviewed by Commercial Dispute Resolution about the SEC’s investigation of ‘highly suspicious’ traders in call option contracts of Pittsburgh-headquartered food manufacturer Heinz.

“Typically, when you settle, you’re seeking to get some sort of agreement short of what you ultimately would have paid should you be found guilty following a jury trial. However, the two individuals appear to have settled for the maximum amount of penalties that the SEC had the ability to seek against them,” said Herzinger.

“What’s interesting about this particular case is the international aspect of it and the fact that the trading was done through use of overseas accounts. Regulators are getting to a place now where they’re much better at coordinating with each other on cases with cross-border elements. The nature of the world economy and the markets is forcing the regulators to work together as increasingly people participate in more international commerce,” Herzinger added.