SEC thinks it knows who was responsible for a huge chunk of the suspicious options trading that seemed to be based on insider information about the private equity buyout of Texas energy company TXU. As it turns out, it wasn't one of the hundreds of people in Texas who were tipped off to the deal in advance--everyone from the local legislators to environmental activists seemed to have been consulted before the deal was announced. We're not sure how they convinced that many people to not to talk or trade. But apparently when the Texas Pacific Group tells you to keep something quiet in Texas, you keep it quiet.
SEC attorney Jennifer Brandt told a judge during a status hearing Wednesday in Chicago that the commission learned the identity of the person from the Channel Island of Guernsey and the broker.
Brandt did not disclose the name of the person, who the SEC believes is responsible for the largest portion of the options trades.
SEC identifies one trader in alleged TXU insider trading [Dallas Business Journal]