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9/30/16

The HudBay (HBM) Augusta Resource insider trading scandal finally sees the light of day and SEC charges

After two long years, the US SEC has finally charged three Peruvian nationals for the insider trading that went on around the HudBay (HBM) buyout of Augusta Resource (owners of the Rosemont project at that time). Here's the story, reported very nicely indeed by Peru's Semana Economica, and here's how it starts:

The Securities and Exchange Commission (SEC), the market regulator in the USA, has filed a civil suit against three Peruvians for insider trading; buying shares of a company using confidential information with the objective of making money.

According to the SEC, the lawyers Nino Coppero del Valle and Antonio Castro Roca made illegal profits of more than U$112,000 via the purchase and subsequent sales of shares of Augusta Resource Corporation, a junior miner that traded on the New York Stock Exchange and was developing a mining project in Arizona. 

The SEC also accuses broker Ricardo Carrión, who made a purchase of the shares in the brokerage in which he works and who made a presumed U$73,000 profit. Continues here.

For the record, Nino Coppero's name made it to this humble corner of cyberspace at the time. Meanwhile, Antonio Castro Roca is a big swinging dick major-level Peru lawyer and this will cause both him and his firm acute embarrassment. Finally, Ricardo Carrión is one of the main players in Peru brokerage Kallpa SA, which has been making quite a name for itself recently via placements and deals with other Canadian junior mining companies. The optics are not good, that's putting it mildly.