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

Jan 28 2014 | 2:05am 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.


In Depth

Q&A: Rotation Capital's Rothfleisch On SPAC 2.0

Aug 11 2017 | 7:43pm ET

Corporate actions have long been a staple of event-driven investors, but activity...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Star Mountain: Private Lending in the Lower Middle-Market

Aug 14 2017 | 4:45pm ET

Private credit has become one of the most popular alternative asset classes in recent...

 

From the current issue of