The SEC slammed Wells Fargo Advisors with a $5 million penalty for failing to maintain adequate controls to prevent one of its brokers from trading on insider information, the regulator announced on Monday.
The broker, Waldyr Da Silva Prado Neto, a Brazilian citizen working for Wells Fargo in Miami, traded on a tip from a customer that Burger King was being acquired by a New York-based private equity firm, according to the SEC. Prados insider trading in Burger King stock allegedly occurred from May 17 to Sept. 1, 2010, the SEC said.
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