The anticipated settlement will come in force, after receiving approval from the US District Court for the Southern District of New York judge Richard Sullivan.
The market watchdog accused the company for trading Nexen stocks in advance based on insider information that Chinese CNOOC is going to acquire the aforesaid company.
Acting on the secret information, the accused firm purchased a large amount of shares, subsequently earned over $7m in illicit profits immediately after the deal was announced.
SEC Enforcement Division’s Market Abuse Unit and Associate Director of the New York Regional Office Deputy Chief Sanjay Wadhwa said, "The speedy resolution of this case shows the serious consequences that await traders who engage in insider trading."
Under the terms of the agreement, the company will pay $7.12m in illegal profits made from trading Nexen stock, and a $7.12m penalty.
The proposed judgment also directs Well Advantage from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Exchange Act Rule 10b-5.
