A former senior vice president at MFS is being sued by the SEC for allegedly acting on a tip related to when the government stopped sales of its 30-year bond in 2001.

According to the Associated Press, the SEC's suit alleges that Steven Nothern used information from Peter Davis, a financial consultant, that the Treasury planned to end sales of the bond to buy $25 million worth of bonds for MFS before the news came out publicly on October 31, 2001.

Davis learned of the news at a restricted news conference, and allegedly passed the information on to "certain individuals." Davis was working at that time as a consultant for both MFS and Goldman Sachs.

The SEC filed the suit in District Court in Boston. It initially filed the suit in September of 2003, but shelved the suit two months later. MFS settled charges with the SEC for $900,000 in September 2003.  

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE