The United States Securities and Exchange Commission has filed an insider dealing complaint against the son of one of Indonesia's most prominent businessmen, Aburizal Bakrie.
The regulator said yesterday it had filed a complaint in the US District Court for the Southern District of New York against Anindya Bakrie, 23, a former junior analyst in Salomon Smith Barney's Global Power Group based in its New York office, alleging that he violated, directly and indirectly, Section 10(b) of the Exchange Act.
An SEC spokesman said last night that Mr Bakrie had agreed to settle the case without admitting or denying the allegations and had paid a US$40,000 civil penalty.
According to the SEC, its complaint alleged that Mr Bakrie, believed to be back in Jakarta, engaged in insider trading in Washington Gas Light during merger negotiations in which Salomon was participating as an adviser.
It alleged that on September 5 last year, Mr Bakrie requested a friend, Roy Handojo, to purchase shares on his behalf in Washington Gas, with a promise to share any subsequent profits with Mr Handojo.
At the time, the SEC alleged, Washington Gas was involved in confidential merger negotiations with a potential buyer, Consolidated Natural Gas, for which Salomon was serving as investment banker.