A former director of NBTY, a Long Island-based vitamin company, and others in his family were charged Thursday by regulators with insider trading.
The Securities and Exchange Commission alleges that the board member, Glenn Cohen, learned the vitamin business was negotiating a sale to The Carlyle Group and passed the information along to four others, his three brothers and his brother's girlfriend.
The brothers and girlfriend then traded on the information.
"As a board member at NBTY for more than 20 years, Glenn Cohen knew the importance of maintaining the confidentiality of company information. Unfortunately, when presented with exclusive details about an impending sale, he breached his duty to NBTY shareholders in order to enrich his own family members," said Amelia A. Cottrell, associate director in the SEC's New York Regional Office in a release.
Under the settlement, which is subject to court approval, the former director and his family circle neither admitted nor denied the charges.