Dow Jones reports the SEC has sued Ramesh Chakrapani, a managing director at Blackstone, for insider trading involving Albertsons, a chain of supermarkets, scoring over $3.6 million in not necessarily legal gains.
A group including of Supervalu (SVU.N), CVS (CVS.N) and private equity firm Cerberus bought Albertsons in 2006. The SEC alleges that Chakrapani was part of the Blackstone team that advised Albertson's on the deal.
"We are shocked by this alleged breach of the law and violation of our own compliance policies and ethical standards," said Blackstone spokesman Peter Rose. He said the company was fully cooperating with authorities.