The Securities and Exchange Commission says it is charging two financial advisors and three others connected to them with insider trading for more than $1.8 million in illegal profit gained from confidential information gleaned through an Alcoholics Anonymous relationship.
The SEC says Timothy J. McGee and Michael W. Zirinsky, representatives at Ameriprise Financial Services, traded in stock of insurance company Philadelphia Consolidated Holding Corp. before it was publicly known it was being acquired by Japanese firm Tokio Marine Holdings in July 2008. McGee obtained the information after an executive at the Philadelphia insurer, with whom he had a relationship with through Alcoholics Anonymous, complained about pressure he was facing due to the impending acquisition.