Thursday, July 23, 2009

Kuwaiti firm CEO sued

NEW YORK: Securities regulators yesterday sued the head of a Kuwaiti investment firm seeking the return of millions of dollars in profits reaped after false takeover rumors sent shares of two US companies soaring.

The Securities and Exchange Commission (SEC), which filed the civil lawsuit in the US District Court in Manhattan, said Hazem Khalid Al Braikan, Al Raya Investment Company and other related entities in Kuwait and Bahrain had realised trading profits of more than $5 million from suspicious trading.

The SEC said the defendants "profited from amassing large positions" in securities of Harman International Industries and Textron shortly before bogus announcements of takeover offers for the companies.

Other defendants include United Gulf Bank, described in the court papers as the investment banking arm of Kuwait Projects Company (Holding), and KIPCO Asset Management, a UGB unit.

The SEC said Al Braikan is chief executive officer of Al Raya, which the SEC said "purports to be" an international asset management company created in 2007 with KIPCO Asset Management.

Source : Guld Daily News

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