Bush’s Indian pal under SEC scanner

May 26, 2008

The SEC’s complaint, filed in the US District Court for the Southern District of Florida, charges Dr Zachariah, 58, a Fort Lauderdale, Florida-based cardiologist, and his brother, Dr Mammen P Zachariah, 60, also a cardiologist, with illegal trading in the shares of two unrelated companies.

The SEC alleges that Dr Zach Zachariah, a board member at pharmaceutical company IVAX Corporation, began illegally trading in IVAX securities only minutes after he learned that IVAX might be acquired by Teva Pharmaceuticals Industries, Ltd. He tipped off his brother, who then purchased IVAX shares.

The SEC’s complaint further alleges that the two brothers and Dr Zach Zachariah’s friend, Dr Sheldon Nassberg, 66, an endocrinologist, also engaged in illegal insider trading in the stock of an unrelated company, Correctional Services Corporation, around the same time as the illegal IVAX trading.

Linda Chatman Thomsen, director of the SEC’s Division of Enforcement, said, ‘The use of inside information to trade ahead of mergers and acquisitions undermines investors’ faith in the integrity of our public markets. This action demonstrates that we will continue to vigorously pursue actions against those who engage in such misconduct.’

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