UPDATE 1-U.S. regulator charges two Chileans with insider trading
(Adds comment from Abbott, SEC)
By Joseph Ax and Anthony Esposito
NEW YORK/SANTIAGO (Reuters) - A former board member of Chile's CFR Pharmaceuticals SA was charged on Monday by U.S. regulators with insider trading on information regarding Abbott Laboratories' $2.9 billion acquisition of CFR earlier this year.
The U.S. Securities and Exchange Commission filed a civil lawsuit accusing Juan Cruz Bilbao Hormaeche of reaping more than $10.1 million in profits by trading on non-public information he learned from CFR board meetings ahead of the deal, which was announced in May and finalized in September.
The lawsuit also charged a business associate of Bilbao, Tomas Andres Hurtado Rourke, with processing securities transactions for Bilbao and himself through an offshore entity. Hurtado earned nearly $500,000 in profits, according to the SEC.
Bilbao, 55, and Hurtado, 40, are Chilean citizens who live in Santiago, according to the lawsuit. Lawyers for the two men could not immediately be identified.
Bilbao is the president of banking and insurance company Consorcio Financiero SA, and Hurtado is a director of the company's banking unit, according to Consorcio's website.
Representatives at Consorcio were not immediately available to comment.
According to the SEC, Bilbao first learned of Abbott's confidential offer to acquire CFR at a March 10 board meeting. Continuación...