Fine, charges in NBTY insider trading case
Fish-oil capsules are produced, dried and packaged in an NBTY plant in Bohemia. (Aug. 13, 2007) Credit: Newsday File / Ken Spencer
A Chicago consultant was fined and faces criminal charges in connection with alleged insider trading in the run-up to a private equity company's $3.8-billion takeover of NBTY, a Ronkonkoma nutritional supplements maker, the Securities and Exchange Commission said Thursday.
Sherif Mityas "has agreed to pay more than $78,000 to settle the SEC's charges," the SEC said in a news release. The proceedings were held at the U.S. District Court in Brooklyn.
In a parallel action, the U.S. attorney's office for the Eastern District of New York unsealed criminal charges against Mityas.
The SEC alleged that the management consultant, Mityas, along with others who worked at his global management consulting firm, were retained by the Carlyle Group in May 2010 to provide strategic advice. Mityas did not respond to a request for comment.
The same month his firm was hired by the Washington, D.C.-based private equity firm, Mityas bought NBTY stock, then tipped off a relative who also bought NBTY shares, the SEC said.
Carlyle publicly announced its bid for NBTY in July 2010. After the announcement, Mityas and his relative sold their NBTY stock for a combined profit of nearly $38,000, the SEC said.
NBTY was the Island's sixth-largest public company by sales before its acquisition, with annual revenue of $2.6 billion.
Out East with Doug Geed: Wine harvests, a fish market, baked treats and poinsettias NewsdayTV's Doug Geed visits two wineries and a fish market, and then it's time for holiday cheer, with a visit to a bakery and poinsettia greenhouses.
Out East with Doug Geed: Wine harvests, a fish market, baked treats and poinsettias NewsdayTV's Doug Geed visits two wineries and a fish market, and then it's time for holiday cheer, with a visit to a bakery and poinsettia greenhouses.
