SEC Drops Herbalife Insider Trading Charges Against Roomies Due To Scheduling Conflict

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The conflict being that the buddies have fled to Poland and don't plan to return any time soon.

The Securities and Exchange Commission on Monday filed to dismiss insider-trading charges against a man accused of profiting from privileged information tied to Herbalife Ltd. The SEC had charged Jordan Peixoto, of Toronto, of buying Herbalife options after hearing William Ackman’s Pershing Square Capital Management LP was planning to make a negative public presentation about the nutritional supplements maker. Mr. Peixoto ultimately made $47,100 in profits. The SEC said it is dismissing the charges because the two men who developed the information and passed it on to Mr. Peixoto aren’t available to testify at the trial, which had been set for March.

According to the agency, Mr. Peixoto was tipped off about Mr. Ackman’s planned comments by Filip Szymik, who learned the information from his roommate and longtime friend Mariusz Adamski, then an analyst with Mr. Ackman’s Pershing Square. The two men, who were roommates in New York City at the time of the event, have since returned to their native Poland and have indicated they intend to assert their Fifth Amendment right against self-incrimination if compelled to testify.

SEC Files to Drop Insider-Trading Case on Herbalife [WSJ]

Earlier: SEC Charges Guy With Being Very Bad Roommate

Related

Pershing Square: Herbalife Silenced Us

Earlier today it was noted that, to the surprise of many, Bill Ackman and Carl Icahn had refrained from asking questions or dialing in and making sudden outbursts during this morning's conference call to discuss Herbalife's fourth quarter earnings.  Obviously this came as a shock on account of Ackman and Icahn taking many opportunities in the past to share their feelings re: the company and each other. And while it's true both men personally held their tongue's today, according to Pershing Square, one of its analysts had planned to ask questions on Bill's and the hedge fund's behalf but was shot down.