Badin Rungruangnavarat, the Bangkok-based trader who allegedly traded on inside information ahead of a public announcement related to the acquisition of Smithfield Foods by a Chinese company, agreed last week to pay $5.2 million to settle the charges.
The SEC froze Badin’s assets in June after filing a complaint alleging that he made more than $3 million in illegal profits through insider trading in Smithfield securities.
Badin allegedly acquired out-of-the-money Smithfield options—or options with only time value that erode quickly—and single-stock futures contracts in the week leading up to a May 29 announcement about the proposed sale of Smithfield to Shuanghui International Holdings
“Our quick action in June to stop Badin’s insider trading profits from leaving the U.S. made this multi-million dollar settlement possible,” Daniel M. Hawke, the chief of the SEC enforcement division’s Market Abuse Unit. “Once he was denied access to his trading account, Badin elected to forfeit all of his ill-gotten proceeds plus pay a $2 million penalty to settle the case against him.”
Badin entered a final judgment ordering him to pay $3.2 million in repayments, as well as a $2 million penalty to the SEC. Without admitting or denying the SEC’s charges against him, Badin agreed to adhere to the rules established under the Securities Exchange Act.