Chile’s securities regulator has fined former presidential candidate Sebastian Pinera US$680,000 for conducting illegal insider trading of the airline stock LAN Airlines SA.
At issue was that Mr. Pinera, a Board of Director member of the company, bought the airline’s stock just a few days before a strong earnings report in July of last year. Mr Pinera had advance knowledge of the report – and took advantage of this inside knowledge to profit from his sudden 3 million share purchase.
Two other stockholders in the airline also were fined. Pinera indicated he would not appeal the fine, which he called ‘politically motivated’.
Commentary: Another example of the “globalization” of insider trading.