Tang Pleads Guilty In Tempur-Pedic Insider Trading Case

Date : 04/16/2010 @ 8:16PM
Source : Dow Jones News
Stock : Acxiom Corp. (MM) (ACXM)
Quote : 27.0  0.13 (0.48%) @ 2:11PM

Tang Pleads Guilty In Tempur-Pedic Insider Trading Case

Tempur Pedic (NYSE:TPX)
Historical Stock Chart

5 Years : From Jul 2012 to Jul 2017

Click Here for more Tempur Pedic Charts.
   By Shasha Dai 
   Of DOW JONES LBO WIRE 
 

King Chuen Tang, a former chief financial officer of Friedman Fleischer & Lowe LLC, pleaded guilty to insider trading charges in federal court in San Francisco.

According to an announcement from Joseph Russoniello, the U.S. Attorney for the Northern District of California, Tang admitted that in the spring of 2008, he shared inside information about foam-mattress company Tempur-Pedic International Inc. (TPX) with his friends, and that he and his friends invested illegally using the information.

Tang, also known as Chen Tang, also admitted that in 2007 he received inside information from his brother-in-law Ronald Yee, who worked at the time as CFO of hedge fund ValueAct Capital, on technology company Acxiom Corp. (ACXM). Tang and his friends traded on Acxiom's stock based on the inside information, the announcement said.

In all, Tang and his friends made about $5.5 million in profit from the trades, Russoniello said.

Tang, 40, pleaded guilty to all counts, including one count of conspiracy to commit insider trading and one count of insider trading. Tang is out on bail and scheduled to appear before U.S. District Court Judge Jeffrey S. White in San Francisco on Sept. 16.

The maximum statutory penalty for the conspiracy count is five years of imprisonment and a $250,000 fine. The maximum statutory penalty for the insider trading count is 20 years of imprisonment and a $5 million fine.

Friedman Fleischer & Lowe has said Tang was suspended in April 2008 and later fired. The firm was not named in the case.

Tang's lawyers couldn't be reached for comment late Friday.

(Dow Jones LBO Wire covers news about private equity.)

-By Shasha Dai, Dow Jones LBO Wire; 212-416-2037; shasha.dai@dowjones.com

 
 

Latest ACXM Messages

{{bbMessage.M_Alias}} {{bbMessage.MSG_Date}} {{bbMessage.HowLongAgo}} {{bbMessage.MSG_ID}} {{bbMessage.MSG_Subject}}

Loading Messages....


No {{symbol}} Message Board. Create One! See More Posts on {{symbol}} Message Board See More Message Board Posts


Your Recent History
LSE
GKP
Gulf Keyst..
LSE
QPP
Quindell
FTSE
UKX
FTSE 100
LSE
IOF
Iofina
FX
GBPUSD
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.


NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.