BATON ROUGE, LA (WAFB) - A former executive of the Shaw Group pleaded guilty Friday to insider trading that resulted in nearly a million dollars in profits.
The US Attorney's Office - Middle District reported Scott Zeringue, 48, of Baton Rouge, pleaded guilty to one count of conspiracy to commit securities fraud. He faces up to five years in prison, a $250,000 fine and three years of supervised parole. According to documents, Zeringue was the vice president of construction operations for Shaw's plant services.
US Attorney Walt Green said Zeringue's conviction was the result of an ongoing federal investigation into the use of confidential information about Chicago Bridge and Iron Company (CB&I) acquiring the Shaw Group. The public announcement of the merger was announced on July 30, 2012, which caused Shaw's stock price to soar.
Officials said during Friday's proceeding, Zeringue admitted to receiving confidential insider information about the merger before the official announcement and passed the information on to a family member. Officials added Zeringue passed on the information with the understanding the relative would trade in Shaw stock based on that information. Documents indicate the pair made more than $750,000 in profits.