By Sarah N. Lynch
WASHINGTON, Nov 28 (Reuters) - U.S. securities regulators on
Wednesday charged the former chief executive of Delta Petroleum
Corp with leaking confidential information to a friend about an
impending large investment in the company by a well-known
The Securities and Exchange Commission said that former
Delta CEO Roger Parker is the central source of an
insider-trading scheme that occurred before the Beverly
Hills-based private investment firm Tracinda Corp had agreed to
purchase a 35 percent stake in Delta Petroleum.
An attorney for Parker could not immediately be reached for
The SEC's charges against Parker come just one month after
the agency charged his friend, insurance executive Michael Van
Gilder, for allegedly trading based on the tips he received from
Van Gilder was also indicted last month on five counts of
insider-trading in a parallel criminal case. He pleaded not
His attorney was out of the country on Wednesday and could
not immediately be reached for comment.
According to the SEC, Parker allegedly tipped off Van Gilder
and at least one other friend about the upcoming investment by
Tracinda. The SEC also claims Parker told Van Gilder about
Delta's confidential third quarter 2007 earnings.
All of the various tips helped generate more than $890,000
in illicit profits, the SEC said.
Earlier this month, the Van Gilder Insurance Corporation
announced that Van Gilder was taking an "indefinite leave of
absence." He also stepped down as CEO of the company.
The SEC is seeking to prohibit Parker from acting as an
officer or director of a public company.
The agency is also asking for a judgment ordering Parker and
Van Gilder to pay a financial penalty and disgorgement.
The SEC said its investigation is continuing.
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