Hazem Khalid al-Braikan, who was charged by the Securities and Exchange Commission (SEC) last week, was discovered in his bed with a gunshot wound on Sunday (July 26th), according to a security official.
Mr Al- Braikan was chief executive officer of Al-Raya Investment, which is partly owned by Citigroup.
The SEC had frozen $5 million in profits that were believed to have been made by conducting deals on the back of fraudulent takeover speculation involving Harman International Industries and Textron.
His company, along with the United Gulf Bank and KIPCO Asset Management, was said to have traded shares in the two firms after their values rose on suggestions that they were to be the subject of buyouts.
Once the rumors were found to be false, the shares prices of the two firms fell.
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Securities regulators in the US have filed a lawsuit against a Kuwaiti businessman who is alleged to have made millions of dollars by profiting from bogus takeover rumors involving two US companies.
The Securities and Exchange Commission (SEC) has sued Hazem Khalid al-Braikan, the chief executive of Al Raya Investment Company - which is partly owned by Citigroup - as well as a number of related entities.
A court order freezing more than $5 million in trading profits has been obtained by the SEC, which alleges that the money was made after hoax offers were made for Harman International Industries and Textron.
Shares in the Harman International rose on Monday after media outlets received a false notification that an offer had been submitted to purchase the firm.
"Harman International's share price ... climbed more than 40 percent in pre-market trading." the SEC said, adding that the price closed at $20.80 on Monday after the company rejected the claim.
According to the Financial Times, the SEC has previously been criticized for not acting fast enough following suspicious trading activity.
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