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(Updates with SEC lawyer in third paragraph.)
Oct. 17 (Bloomberg) -- Annabel McClellan, the wife of an ex-Deloitte Tax LP partner, agreed to pay $1 million to settle a U.S. Securities and Exchange Commission lawsuit alleging she and her husband tipped family members to merger deals.
The SEC will drop claims against her husband Arnold McClellan, who headed one of Deloitte’s regional mergers and acquisitions teams, if a federal judge approves his wife’s settlement, said Daniel Bookin, his attorney.
Annabel McClellan didn’t admit wrongdoing, according to a consent of final judgment filed today in federal court in San Francisco. Robert Tashjian, an SEC lawyer in San Francisco involved in the case, declined to comment.
McClellan, who pleaded guilty in April to one count of obstructing the SEC’s investigation, said she overhead her husband talking about the deals and passed the information to her brother-in-law, according to a transcript of her change of plea hearing.
Nanci Clarence and Nicole Neubert, lawyers for Annabel McClellan, didn’t immediately return messages seeking comment about the settlement.
The McClellans, of San Francisco, were sued last year for allegedly telling family members of at least seven confidential buyouts between 2006 and 2008 planned by Deloitte’s clients, including Kronos Inc., aQuantive Inc. and Getty Images Inc. The relatives made about $3 million in profits, the lawsuit said.
McClellan told prosecutors that her husband wasn’t aware of or involved in passing information, according to documents filed in the SEC case.
“When the SEC was able to review all the evidence, they recognized that Mr. McClellan had done nothing wrong,” Bookin said in a telephone interview today.
The case is U.S. v McClellan, 10-5412, U.S. District Court (San Francisco).
--Editors: Mary Romano, Glenn Holdcraft
To contact the reporters on this story: Karen Gullo in San Francisco at firstname.lastname@example.org; Joshua Gallu in Washington at email@example.com.
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