The regulator alleged that Balkenhol’s wife’s inside knowledge of her bosses’ deals lead Balkenhol to invest more than $530,000 in two of Oracle’s takeover targets during 2005. According to the charges, his wife told him about secret meetings leading up to Oracle’s successful bids to buy a pair of rival business software makers – Retek Inc. and Siebel Systems Inc.
By acquiring Retek and Siebel shares before Oracle made the takeover offer, Balkenhol garnered more than $97,000 in profits.
According to the AP, Balkenhol settled civil charges filed in a San Francisco federal court for $199,000. The profits he realized as a result of his inside information are being repaid as part of the SEC settlement, which also imposed more than $100,000 in penalties and interest.