Banker fined $5.1MM for Burger King insider trading

Dec. 3, 2012

Igor Cornelsen, a former banker from Brazil, has been ordered to pay $5.18 million to the U.S. Securities and Exchange Commission on charges of insider trading in Burger King Holdings prior to the company's 2010 sale to 3G Capital.

According to Reuters, Cornelen received tips from his Wells Fargo broker after learning that the quick-service chain was up for sale.

Burger King was sold for $24 a share, or $3.26 billion, in September 2010; a price that was was about 46 percent higher than the anticipated cost. The settlement is awaiting court approval, and calls for Cornelsen and his firm, Bainbridge Group Inc., to pay $3.36 million in fines and $136,621 of interest, as well as $1.68 million in illegal profit.

From the story:

"The SEC said Cornelsen began trading Burger King call options, a bet the stock would rise, on May 18, 2010, one day after Prado told him in an email written in Portuguese: 'I have some info ... You have to hear this.' ... Cornelsen would subsequently seek tips by sending cryptic emails ... Upon realizing how much he had made after the takeover was announced, Cornelsen exclaimed in an email to (the Wells Fargo broker), 'Wow! What a day!'"

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