Thursday, April 30, 2009

Ex-Citigroup Investment Banker Sued by SEC for Insider Trading

U.S. regulators accused a former Citigroup Inc. investment banker of insider trading, claiming he fed his brother confidential information on health-care industry deals, including a planned 2006 takeover of Andrx Corp.

Maher Kara, who worked at Citigroup Global Markets, leaked the information from April 2004 to April 2007, the Securities and Exchange Commission said today in a civil lawsuit at federal court in San Francisco. His brother, Michael Kara, traded stocks and options based on the tips and shared the information with other people, the agency said.