On June 26, three men were arrested and charged with participation in a scheme to trade on material nonpublic information which one of the men, Sebastian Pinto-Thomaz, received through his job at a credit rating agency. Pinto-Thomaz gave two friends information regarding an upcoming acquisition of the Valspar Corporation by the Sherwin-Williams Company. Each of Pinto-Thomaz’s friends reaped more than $100,000 in profits as a result of trades executed on the basis of this information. Further, in connection with a FINRA inquiry at the credit rating agency in advance of the public announcement of the Sherwin-Williams-Valspar acquisition, Pinto-Thomaz denied any association with the two individuals whom he had provided with confidential information.
United States v. Pinto-Thomaz, 1:18-MJ-05432 (S.D.N.Y.)