Executive Indicted in Insider Trade Case

A top executive of financial services company LendingTree Inc. has been indicted on federal charges stemming from insider trading tied to the purchase of the company by USA Interactive in 2003.

The indictment of the senior vice president, David Anderson, was filed under seal this month. It was made public Monday when he appeared before a federal magistrate and was released on bond.

The indictment alleges that Anderson improperly disclosed information to others that led them to purchase thousands of shares of LendingTree stock and options from April 30 to May 5, 2003, when the USA Interactive deal was announced.

It also accuses him of trying to obstruct a Securities and Exchange Commission investigation into suspected wrongdoing.

LendingTree, based in Charlotte, N.C., matches would-be borrowers with prospective lenders over the Internet but makes no loans itself. The company was acquired by Barry Diller’s USA Interactive -- now known as IAC/InterActiveCorp.

LendingTree shares soared 43% in the hours after the deal was made public.

Anderson, general manager of a LendingTree division that offers real estate settlement services, faces charges including making false and misleading statements to the government, attempting to persuade others to make false statements and withhold information from the SEC, corruptly obstructing an official proceeding, and witness tampering.

Anderson’s attorney, Mark Calloway, could not be reached for comment and a call and e-mail to Calloway’s assistant were not returned.