DENVER—Former insurance executive Michael Van Gilder has pleaded guilty to securities fraud in an insider-trading case connected to billionaire Kirk Kerkorian’s 2008 investment in Denver-based Delta Petroleum.
According to the Denver Post ( ), Van Gilder acknowledged Wednesday he traded on details of Kerkorian’s investment that were provided to him by an unidentified, high-level Delta executive.
Despite his guilty plea, U.S. District Judge Wiley Daniel said he would only take it under advisement because he wanted “to be convinced that what you did was a violation of securities law.”
Van Gilder is also a co-defendant in a civil lawsuit filed by the U.S. Securities and Exchange Commission related to the Kerkorian deal, a $684 million investment that sent Delta’s sagging stock soaring when it was announced in 2007.
When asked in court why he parlayed insider information into an $86,000 payday, Van Gilder said, “I was naive and ignorant and made a mistake.”
Van Gilder was CEO of his family-owned business, Van Gilder Insurance, until he stepped down in February. He remains a shareholder.
Van Gilder said he bought 90 call options on Delta Petroleum stock on Christmas Eve 2007 just before Kerkorian’s buy-in to the company.
He faces a prison term of up to 18 months. He also agreed to hand over $86,100 he made on the trades.
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Information from: The Denver Post,
