We’ve already seen SEC insider trading cases alleging husband betraying wife, wife betraying husband, boyfriend betraying girlfriend, brother-in-law betraying brother-in-law, and even divorcee betraying divorcee, but here’s a new one: brother betraying sister.
Yesterday, the SEC filed a settled insider trading action against Sarath B. Gangavarapu alleging that he misappropriated inside information from his sister, whose husband was an executive officer at Covansys Corporation. The SEC claims that Gangavarapu purchased over 54,000 shares of Covansys stock at a cost of over $1.4 million based on that information during the nine days leading up to Covansys’ public announcement that it would be acquired by Computer Sciences Corporation. The concept of “sibling betrayal” is a new one in SEC cases to my knowledge, but due to the typical love-hate relationship between siblings in general, I’m going to slot this case as Betrayal Level: Low (”Someday We’ll Laugh About It”) on the “Familial Betrayal Advisory System.”
