Private Equity Exec. Guilty In Insider-Trading Case

Apr 23 2010 | 11:30am ET

A former private equity executive had pleaded guilty to insider-trading on information he received from his brother-in-law, a former hedge fund executive.

King Chuen Tang admitted both to passing on confidential information as well as receiving it. The former Friedman Fleischer & Lowe CFO said he received—and traded on—insider information about Acxiom Corp. from his brother-in-law, then-ValueAct Capital CFO Ronald Yee. In addition to passing on Yee’s tips about Acxiom, Tang also admitted to passing on a tip of his own about mattress company Tempur-Pedic International.

Tang pleaded guilty to insider trading and conspiracy in San Francisco federal court. He faces up to 25 years in prison when he is sentenced on Sept. 16; until then, he is free on bail.

According to prosecutors, Tang and his circle made about $5.5 million on the illegal trades.

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