Two Charged With Insider-Trading On 3G-Burger King Deal

Jan 28 2014 | 1:05am ET

At last: an alternative-investments insider-trading scandal without allegations of wrongdoing by an alternative investor.

Federal prosecutors charged two men with trading on advance knowledge that private-equity firm 3G Capital Management was poised to buy Burger King Worldwide. Former Wells Fargo financial adviser Waldyr Prado and Igor Cornelsen, who runs a British Virgin Island investment firm, bought up Burger King shares in 2010 after a friend told Prado of the developing deal.

Prado sold his shares soon after the deal was announced, but not before telling Cornelsen, who alleged earned $1.4 million on the deal.

The charges follow Securities and Exchange Commission allegations leveled last year, which resulted in $11.1 million in penalties against both men.

Neither Prado nor Cornelsen has been arrested. Both men live in Brazil.


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