SEC Charges Stockbroker With Insider Trading

Lee Edelman, a former New York stockbroker, is being charged with insider trading after he allegedly purchased and profited from 12,000 shares of a Silicon Valley company based on information that his girlfriend, who was familiar with the subject, revealed regarding a pending deal.

Edelman's girlfriend is an attorney who was working on the deal involving Applied Materials' acquisition of Metron Technology.

The complaint, filed by the Securities and Exchange Commission, claims that Edelman made a profit of almost $23,000 after he began to purchase Metron shares up until two days before the deal, which was announced Aug. 16.

Edelman claims that he heard about the acquisition while in the apartment he shared with his girlfriend, who was on the phone discussing the transaction. The girlfriend claims she cautioned Edelman against using the information, and that he promised not to, although he secretly continued purchasing Metron Stock.