The Securities and Exchange Commission has filed a lawsuit against then Dow vice president Mack Murrell, his friend David Teekell of Tomball, and a stockbroker. The SEC says Teekell netted more than $500,000 by buying Rohm & Haas stock before Michigan-based Dow announced a takeover five years ago.
Ryan McConnell is a former federal prosecutor and an adjunct professor at the University of Houston Law Center.
“There’s been a lot of activity from the SEC and the Justice Department in insider trading cases. I think the government recognizes when you have these types of issues coming up that there’s an adverse impact on investor confidence. And people don’t want to trade if they think the game is rigged.”
The government says the information came from Murrell. It says he got it from his girlfriend, who worked for Dow’s chief financial officer. The two are now married. Murrell resigned from Dow in March.