An Abu Dhabi trader has been accused of carrying out suspicious trading by the Securities and Exchange Commission (SEC).
Khaled Mohammed Sharif Al Sayed Al Hashemi allegedly made a profit of more than $450,000 after buying shares in the weeks leading up to an announcement that International Petroleum Investment would be taking over Nova Chemicals.
According to the SEC, Mr Al Hashemi, who works for the Abu Dhabi government, bought 120,000 shares in Nova through an online brokerage account in the fortnight before the takeover became public, with 54 per cent of his total purchases being made on the last trading day prior to the news breaking.
Following the merger, shares in Nova rose 289 per cent, prompting him to sell his entire stake in the firm.
"Today's actions demonstrate the commission's determination to address short selling abuses," chairman Mary Schapiro explained.
Earlier this week, a Kuwaiti trader accused by the SEC of profiting from suspicious trades involving two US firms was found dead in an apparent suicide.
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