Thai accused in Smithfield insider case

In this May 29, 2013 photo, a pig statue sits outside the offices of Smithfield Foods in Smithfield, Va. Smithfield Foods has agreed to be bought by Shuanghui International Holdings for about $4.72 billion. Residents in this southeastern Virginia town have mixed reactions to the idea that the maker of their famous cured hams may soon be owned by a Chinese company. (AP Photo/The Virginian-Pilot, Amanda Lucier)

BANGKOK — The U.S. Securities and Exchange Commission says a Thai plastics company employee made profits of $3.2 million by trading on inside knowledge that a takeover offer for Smithfield Foods was imminent.

The SEC has sought to freeze the U.S. brokerage account of 30-year-old Badin Rungruangnavarat so the trading profits can’t be transferred overseas.

U.S. pork producer Smithfield announced a $4.7 billion takeover by Chinese meat company Shuanghui in late May.

The SEC alleges Rungruangnavarat cornered the market in Smithfield options and futures in the days before the takeover as well as buying Smithfield stock.

It says a Thai conglomerate was also considering a bid for Smithfield and Rungruangnavarat had links to its investment bank. The bank had access to a data room that Smithfield established for potential buyers.