Man indicted for insider trading ahead of Shaw Group merger
BATON ROUGE - A man has been charged with insider trading in connection with the acquisition of the Baton Rouge-based Shaw Group.
Dr. Jesse Roberts, 43, of Ruston was indicted by a grand jury on charges of conspiracy to commit securities fraud and securities fraud on Thursday, according to the Louisiana Department of Justice.
The indictment alleges that in the summer of 2012, when Shaw was considering a potential merger operation, Dr. Roberts and brother-in-law, Scott Zeringue, a former Shaw executive, engaged in a scheme to profit from inside operation about the merger. In late July of 2012, Shaw and Chicago Bridge and Iron Company ("CB&I") came to an agreement that resulted in CB&I acquiring all outstanding shares of Shaw stock.
The indictment goes on to say that Zeringue passed inside information on to Roberts, after which Roberts and Zeringue purchased Shaw securities ahead of the public announcement of the merger, and the increase in Shaw's stock price as a result. It is believed that Roberts made more than $650,000 as a result of the inside information.
In June of last year, Zeringue pleaded guilty to insider trading.
Desktop NewsClick to open Continuous News in a sidebar that updates in real-time.
NFL player from Baton Rouge buys out Burlington Coat Factory layaways
Some Baton Rouge area Amazon customers still report delivery issues
DOTD using holiday humor to promote road safety
Officials spread holiday cheer in Baton Rouge neighborhood
Economic growth in Livingston Parish on the rise