Hero Accused of Insider Trading

A man accused by the SEC of hauling in $8.6 million in profits in an insider-trading scheme tied to Dell’s purchase of Perot Systems is regarded as a hero by some.

Reza Saleh, who has worked with H. Ross Perot in various capacities for decades, was at the center of the daring rescue of two Perot employees held hostage in Iran in 1979. The Wall Street Journal reports the rescue was the subject of the Ken Follet book On the Wings of Eagles.

The employees were being held in an Iranian jail and Saleh, an Iranian employee of Electronic Data Systems—Perot’s company at the time—led a mob that broke into the prison where the two employees were held, then helped them on their escape over the Turkish border.

"Unsolicited and with no promise of reward, this guy put his life on the line and didn't flinch," Ralph Boulware, a former employee of Electronic Data Systems who was also involved in the rescue, told the Journal.

Thirty years later, Saleh is accused of using insider information gained as a Perot Systems employee to cash in on the $3.9 billion takeover of the company by Dell. He’s accused of making large purchases of Perot Systems call options based on nonpublic information discovered while performing his duties for two Perot-related private companies and Plano-based Perot Systems, the SEC said.

The SEC says Saleh knew about the impending merger when he made the trades. He was charged Wednesday.

"The overwhelming evidence in this case allowed the SEC to move quickly against the trader before he could spend the huge profits from his illegal trading," said Rose Romero, director of the SEC's Fort Worth regional office, said in a statement. "The commission is seeking a court order to freeze Saleh's assets."