SEC Charges Deloitte Partner and Wife with Insider Trading
The Securities and Exchange Commission (SEC) alleges that Arnold McClellan and his wife Annabel, who live in San Francisco, CA provided inside information to family members about upcoming confidential acquisitions of Deloitte’s clients. The illegal tips to Annabel’s sister and brother in law resulted in them taking financial positions in offshore accounts that reaped roughly $3 million in profits that was supposed to be shared with Annabel. The relatives, James and Miranda Sanders of London, were charged with trading on nonpublic information by the UK Financial Services Authority (FSA). The Sanders and clients of his financial firm made approximately $20 million in U.S. dollars on the inside information that was leaked.
Marc J. Fagel, Director of the SEC’s San Francisco Regional Office, said “Deloitte and its clients entrusted Arnold McClellan with highly confidential information. Along with his wife, he abused that trust and used high placed access to corporate secrets for the couple’s own benefit and their family’s enrichment.” As head of one of Deloitte’s merger and acquisition teams, McClellan provided tax and other advice to clients who were considering corporate acquisitions.