Posted: Jun 27, 2014 10:46 AM by Russell Jones
Updated: Jun 27, 2014 11:23 AM
BATON ROUGE - The U. S. Attorney's Office announced Friday that former Shaw Group executive Scott David Zeringue pleaded guilty to insider trading for deals made before the company's merger with CB&I in 2012.
Prosecutors said Zeringue, a vice president at Shaw's Plant Services Division, admitted in court that he told a family a member about the impending merger so they could both buy up Shaw stock before the price went up. As a result of the scheme, Zeringue and his family member made more than $750,000.
Zeringue told prosecutors he received insider information about the impending merger. He faces a possible sentence of five years in prison with three years supervised release, a fine of up to $250,000, and required him forfeit his profits from the stock sale. Sentencing is set for October.
U. S. Attorney Walt Green said the plea deal came out of an ongoing federal investigation into insider trading surrounding the 2012 merger.
"We will continue to aggressively investigate and prosecute individuals who exploit confidential company information for personal gain at shareholder expense," Green said.
Green asked anyone with information about pre-merger insider trading of Shaw stock to contact Special Agent Moe Hattier of the FBI at (225) 291-5159 or Special Agent Kevin Bodden of the U.S. Secret Service at (225) 925-5436.
Correction: A prior version of the story incorrectly stated that sentencing had already happened.