The U.S. Attorney's office has filed a criminal charge against a local stock broker for obstructing a Securities and Exchange Commission investigation of insider stock trading before the 1981 purchase of Santa Fe International Corp. by the government of Kuwait.
The broker, Stephen R. Tatusko, of Vienna, allegedly made false statements to SEC officials and conspired with others involved to make false statements to conceal the source of the information on the takeover, according to documents filed last week by assistant U.S. Attorney Carol E. Bruce.
John M. Nugent Jr., a former lobbyist whose firm had been hired by Santa Fe, pleaded guilty and was fined $10,000 last month for passing along the information to another lobbyist, Thomas A. Peacock, who in turn allegedly passed on the information to Tatusko, according to documents filed by the prosecutors.
Eleven Washington area residents, including eight local stock brokers, allegedly made a profit of more than $900,000 in one week as a result of the information about the impending takeover, according to U.S. Attorney Stanley S. Harris.
Neither Tatusko, who faces a maximum of five years in prison and a $5,000 fine if convicted, nor his attorney could be reached for comment.