Ex-Employee of Alpha Beta Settles Insider Trading Suit
The Securities and Exchange Commission has reached a settlement with a former Alpha Beta employee who was charged with one civil count of insider trading for allegedly leaking information about the pending Alpha Beta-Lucky Stores merger.
The original SEC complaint was filed on May 31, 1989. It alleged that, while David Hellberg was employed as a financial specialist for Alpha Beta, which is owned by American Stores, he learned of the company’s plans to make a tender offer for Lucky.
The complaint also said Hellberg allegedly tipped his father to the plans. Gerald Hellberg, David’s father, then allegedly bought options to purchase Lucky shares, making a $15,050 investment.
On March 22, 1988, American announced its intention to make a tender offer for Lucky, and Gerald Hellberg subsequently realized profits of about $329,000 on his investment, SEC filings said. Charges against the senior Hellberg are pending.
Settlement documents, which were filed Monday, state that David Hellberg agreed to the settlement without admitting or denying the charges. Although he was originally fined nearly $329,000, the fine was dropped to $5,000--half of his net worth--because there was no evidence that he profited from the alleged insider trading.
