Reza Saleh Perot Systems Insider Trader Agrees to Return $8.6M in Illicit Profits

January 8, 2009

A former Perot family companies employee it charged with insider trading in September has agreed to return all of his illicit profits — a total of more than $8.6 million.

Just two days after Dell Inc. announced plans to acquire Perot Systems, the SEC charged Reza Saleh of Richardson, Texas, with insider trading, alleging that he illegally traded in Perot Systems call options after learning about the merger before it was announced. The SEC obtained a court order at that time freezing all of Saleh's trading profits.

Under the terms of the settlement filed in federal court in Dallas, the SEC plans to ask the court to appoint a third party to recommend a distribution plan for Saleh's illegal profits. The SEC also will ask the court to impose a financial penalty against Saleh. The settlement is subject to court approval.

Without admitting or denying the allegations in the SEC's complaint, Saleh agreed to be permanently enjoined from violations of the anti-fraud provisions of the Securities Exchange Act of 1934. Saleh further agreed to an SEC administrative order barring him from future association with any investment adviser.