On Tuesday, the SEC brought an enforcement action against James D. Zeglis and Gautum Gupta, Lance D. McKee and Jim W. Dixon alleging insider trading in the securities of Georgia-Pacific Corporation. The SEC alleged that Zeglis obtained material nonpublic information from his brother, a member of Georgia-Pacific’s board of directors, and tipped Gupta and Dixon three days before the public announcement that Georgia-Pacific had agreed to be acquired by Koch Industries, Inc. Gupta and Dixon both allegedly purchased Georgia-Pacific securities, and Gupta allegedly tipped McKee.
Gupta and McKee allegedly realized profits of $689,401 and $7,157.60, respectively, and Dixon realized a profit of $116,000 from the sale of Georgia-Pacific options.
