The U.S. Securities and Exchange Commission Tuesday announced the filing of an emergency action over an alleged incidence of illegal insider trading in the securities of Canadian firm, Nova Chemicals Corp.

The SEC filed the action in the US District Court for the Southern District of New York against Khaled Al Hashemi, a citizen and resident of Abu Dhabi, United Arab Emirates, alleging unlawful insider trading in the securities of Nova Chemicals before a Feb. 23 merger announcement with International Petroleum Investment Co. The commission’s complaint alleges that Hashemi reaped $458,760 in profits by trading in advance of the merger announcement.

It obtained a temporary restraining order freezing Hashemi’s assets as well as other emergency relief. Additionally, the SEC is seeking a permanent injunction against Hashemi, disgorgement of his unlawful trading profits, together with prejudgment interest, and civil monetary penalties. The allegations have not been proven.

IE