Third man indicted for Shaw Group insider trading
BATON ROUGE - A third man has been charged with insider trading ahead of the 2012 merger of The Shaw Group and Chicago Bridge and Iron Company.
Billy Adcox, Jr., 44, of Ruston was indicted by a grand jury on Wednesday with conspiracy to commit securities fraud and securities fraud, according to a release from the Department of Justice. If convicted, Adcox faces significant jail time, fines and restitution along with supervised release after his imprisonment.
Adcox, along with his close friend Jesse Roberts and another man, plotted and executed a scheme to profit from the merger of Shaw and CB&I in mid-2012, using information obtained from then Shaw Vice President of Construction Operations, Scott Zeringue. Investigators say Adcox purchased Shaw securities prior to the public announcement of the Shaw/CB&I merger and sold them after the announcement caused the company's stock price to rise, reaping a profit of $37,000 from his illegal insider trading activities.
Jesse Roberts, 43, was indicted on similar charges last month, and Scott Zeringue pleaded guilty to insider trading charges last June.