AP Doctors booked by SEC for violation

July 13, 2012 15:26
AP Doctors booked by SEC for violation

Five physicians in the United States of America, who belong to India, were charged with insider trading in securities by the Securities and Exchange Commission.

According to the indictment, Apparao Mukkamala came to know about the proposed acquisition of American Physicians Capital Inc. (ACAP) by an insurance company. He got this highly confidential information after attending the internal board meetings.

Mukkamala shared the confidential information with his friends (who are also physicians) Suresh Annam, Rao Yelimanchili and Jitendra Prasad Katneni besides his brother-in-law Mallkarjuna Rao Anna. Now, based on the leaked information, the five doctors purchased stock of American Physicians Capital Inc. They were said to have made over $623000 illegal profits by purchasing the stock.

Notably, the complaint against these physicians was filed in a U.S district court. The complaint stated that Mukkamala was the resident of Grand Blanc. He had also served as member of ACAP board and became its chairman in May 2007. The complaint stated that the four physicians, who got the information on the proposed acquisition, purchase nearly $2.2 million of ACAP stock. When they were charged, the five physicians neither admitted nor denied the allegations. But, agreed to pay over $.19 million for settling the charges of Securities and Exchange Commission (SEC).

Read the actual complaint here: http://www.sec.gov/litigation/complaints/2012/comp-pr2012-132.pdf

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