CHARLOTTE, N.C. (AP) — A North Carolina man has been charged with misusing confidential information to make $380,000 in fraudulent securities transactions related to Duke Energy’s proposed purchase of Piedmont Natural Gas Co.
The Charlotte Observer reports that Eric Hill’s insider trading indictment was unsealed Friday after he made his initial appearance in federal court.
The newspaper said Hill, 44, of Charlotte, declined to be interviewed on Saturday.
Prosecutors said Hill used confidential information in October 2015 that he received from an employee of a consulting firm that provided services to Piedmont. The $4.9 billion corporate merger occurred the following year.ADVERTISEMENT
“Stealing material, nonpublic inside information allows a trader to cheat and earn substantial profits by trading before such news becomes public, earning profits by trading again once the news becomes public and impacts the price of a stock,” U.S. Attorney Andrew Murray’s office said in a news release.
The U.S. Securities and Exchange Commission announced Friday that it separately filed a civil lawsuit against Hill in federal court.