2 Chicagoans Accused of Insider Trading
The son of a Washington real estate magnate was accused Tuesday of illegally passing confidential information about one of his father’s deals to a friend who allegedly traded on the inside information.
In a civil complaint filed at federal court in Chicago, the Securities and Exchange Commission accused B. Francis Saul III of violating the Insider Trading Act of 1984. The SEC also charged Saul’s friend, Peter David Garvy.
Both men are 28 and Chicago residents. In 1988, the SEC alleged, Saul, son of B. Francis Saul II of Chevy Chase, Md., told Garvy, a former school roomate, about a proposed tender offer one his father’s companies, Westminster Investing Corp., had made for another Saul concern, the B. F. Saul Real Estate Investment Trust.
According to the complaint, Garvy bought 5,500 shares in the investment trust before the tender offer was made public.
“This kid is totally innocent. He’s taken a lie detector test and passed it 100%,” said Saul’s attorney, George Rogers.
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