Charlotte man indicted for insider trading ahead of Duke Energy, Piedmont Gas merger
A 44-year-old Charlotte man has been indicted by a grand jury for insider trading, in connection with what at the time was Duke Energy’s proposed purchase of Piedmont Natural Gas Co.
Federal prosecutors say Eric Hill reaped $380,000 from the illegal trading, according to a criminal indictment unsealed Friday after his initial appearance in U.S. District Court in Charlotte.
Hill, who is free pending his next court appearance, declined comment when The Charlotte Observer called him on Saturday. A statement from the U.S. Attorney Andrew Murray’s Western District of North Carolina office does not say where Hill was or is employed.
According to the indictment, Hill used confidential information in October 2015 to conduct a series of securities transactions both before and after Duke Energy’s announcement of its planned purchase of Piedmont Natural Gas.
Hill got the insider information from an employee of a consulting firm that provided services to Piedmont, prosecutors allege.
The $4.9 billion merger occurred the following year.
“Stealing material, nonpublic inside information allows a trader to cheat and earn substantial profits by trading before such news becomes public, earning profits by trading again once the news becomes public and impacts the price of a stock,” Murray’s office said in a news statement Friday.
Hill is charged with fraud in connection with the purchase and sale of securities, which carries a maximum sentence of 20 years and a $5 million fine, according to Murray’s office. Hill also is charged with seven counts of securities fraud and each count carries a maximum 25-year sentence and $250,000 fine, prosecutors said.
In announcing the indictment, Murray commended the FBI for its investigation of the case.
The U.S. Securities and Exchange Commission on Friday announced the filing of a separate civil action against Hill in U.S. District Court.
This story was originally published September 26, 2020 at 12:09 PM.