FINRA Bars California Broker for Insider Trading

The Financial Industry Regulatory Authority on Wednesday said it barred a former registered representative based in California after he took part in insider trading earlier this year.

FINRA said Abhishek Uppal of San Francisco, who worked in the investment banking department of Piper Jaffray & Co. from 2007 through July, was barred for buying shares of SoftBrands Inc.

According to FINRA, Uppal made the purchases while the SoftBrands was in discussions about a potential buyout, and Piper Jaffray was acting as a confidential adviser to the maker of hotelier software.

FINRA said Uppal bought more than 27,000 shares of SoftBrands, paying between 42 and 45 cents per share, on June 4 and 5.

The following week, Softbrands announced it would be bought by Golden Gate Capital and Infor Global Solutions for 92 cents per share. Its stock nearly doubled, jumping to 89 cents per share. The next day, Uppal sold his holdings at 89 cents, netting a profit of nearly $12,000.

FINRA said it found that Uppal was in possession of material, non-public information when he bought the stock. He also used an undisclosed account that he maintained at another broker to conceal his trading, the regulator said.

Uppal neither admitted nor denied the charges, but consented to FINRA's findings.

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