The U.S. Securities and Exchange Commission filed criminal and civil insider trading charges against two men accused of illegally profiting from the failed Apollo Tyres-Cooper Tire & Rubber Co. deal, according to Reuters.
One man learned of the Apollo-Cooper merger from his wife, who was Apollo’s general counsel at the time, months before the merger was announced, according to authorities. He allegedly shared the information with his friend, a venture capital executive, and together the pair made more than $1.1 million of illegal profit by trading Cooper shares and call options, according to reports.
The two men could face a maximum of 20 years in prison plus a $5 million fine, according to Reuters.
Apollo, Cooper and the man’s wife were not charged in connection to the case.