Two former PricewaterhouseCoopers LLP (PwC) employees, charged yesterday with insider trading by the US Securities and Exchange Commission, have agreed to pay civil penalties to settle the charges.
Gregory Raben, 30, a former PwC auditor, agreed to pay $US47,758 (₤24,278), and William Borchard, 28, a former senior associate in PwC's transaction services group, agreed to pay $US20,836.
According to SEC’s complaint, Raben and Borchard used their access to sensitive information about PwC’s clients to enable Raben to buy stock ahead of a series of corporate takeovers. Without admitting or denying the allegations, Raben and Borchard agreed to the settlement including monetary penalties.
Borchard, a licensed certified public accountant, was also barred from practicing before the SEC as an accountant for three years under the plea deal. The SEC said Borchard handled financial due diligence for PwC clients interested in mergers or acquisitions and on six occasions in 2006 told his friend and co-worker Raben about confidential plans.
Further reading:
AIG shareholders seek damages from PwC
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