Federal prosecutors have broken up an insider trading ring that earned around $4.8 million in illegal trades based on non-public information -- $250,000 of that netted from trades based on tips related to Electronic Arts' bid to acquire Take-Two.
Take-Two works with public relations firm The Brunswick Group regarding its mergers and acquisitions, and the Dow Jones Newswire reports that a Brunswick employee's husband, a Barclays Wealth broker, reportedly used information he learned from his wife
to tip off his clients regarding investments before EA's bid for Take-Two became public. Devlin was a Lehman Bros. broker at the time of the violations.
The SEC determined that Brunswick employee Nina Devlin is an innocent party in the situation, but will charge her husband
, Matthew Devlin, along with nine other defendants, for trading on and tipping investors based on inside information.
Neither Electronic Arts, Take-Two or its PR firm is believed to have any culpability in the situation. The New York Times reported on a statement
from The Brunswick Group: "This is a violation of trust between husband and wife," the firm said of its employee.
"Our employee was the victim of a criminal act by her spouse which made detection extremely difficult despite our high standards of confidentiality."