Image by Kuwait-Ra'ed Qutena via Flickr
The US Securities and Exchange Commission filed a civil lawsuit against Hazem Al-Braikan, a Kuwaiti citizen, who has at least twice this year engaged in the practice of announcing phony take-over bids for US companies causing the share prices to rise.
Al-Braikan would accumulate a companies stock and then send out a press-release indicating that the company was about to be purchased by an Arab consortium for twice the current value of its shares which would immediately cause the share price to increase on the New York Stock Exchange. Al-Braikan would then sell his shares at a substantial profit.
Today, Al-Braikan was found dead at his villa in Kuwait City, apparently a suicide with a single bullet to his head. Earlier in the day, Al-Braikan had announced that he had retained a law firm in New York to represent him in the litigation and would not comment further on the case.
The SEC motion to freeze Al-Braikan’s US bank accounts was granted by the District Court and it is unclear whether Al-Braikan had any other resources available to him to defend the lawsuit.
The Gulf region has had its share of financial disasters recently, all in the wake of the global economic meltdown. Many of the area’s financial institutions have failed and corporate leaders are being held responsible for the losses, which can dramatically affect their social standing. In a region known for its rigid social structure, the loss of face due to financial distress can have a devastating effect on individuals.
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