The Huffington Post quoted Jacob Frenkel, chair of the firm’s Government Investigations practice, in an article titled “Someone Made A Suspiciously Timed Bet That Herbalife Stock Would Plummet.”
“The most suspicious fact is the timing of the trade,” agreed Jacob Frenkel, a former SEC enforcement lawyer and federal criminal prosecutor who is now a partner at the law firm Shulman Rogers.
Offered an explanation for why the trade may have been made with derivatives that didn’t expire for several weeks after they were purchased. “There’s more of an argument, as a cover story, that this was done to hedge a position, as a way to explain an aberrational trade,” he said.
The SEC is likely to be “all over this like a fumble at the goal line,” Frenkel said, adding that the fact pattern “would be of interest to the Justice Department and likely implicate a parallel criminal investigation.”
Read the full article at The Huffington Post.
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