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October 24, 2009

SEC charges former SemGroup executive

TULSA, Okla. (AP) — The U.S. Securities and Exchange Commission has charged a former SemGroup LP executive with dumping stock in a subsidiary before the parent company's financial troubles became public.



An SEC complaint filed Friday in federal court accused Don Spaugy of insider trading and avoiding losses of $67,424.



Spaugy, SemGroup's vice president of financial services, allegedly sold his 4,500 units in SemGroup Energy Partners LP (SGLP) on July 15-16.



The complaint alleges that between May and July 15, 2008, he learned that SemGroup had a liquidity crisis and used that information for his own purposes.



The value of SGLP units tumbled from about $21 to $11 on July 17, when SemGroup confirmed the parent company's problems.



The stock fell to about $8.30 the next day.



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Information from: Tulsa World, http://www.tulsaworld.com

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