SEC charges former SemGroup executive

October 24, 2009 12:36 pm

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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