The Securities and Exchange Commission has sued a former Bank of America investment banker, alleging he helped a friend earn $18.5 million through illegal insider trading tied to a takeover deal.r><br>The SEC charged the bank’s former head of energy and power infrastructure with leaking material non-public information about a potential acquisition to his close friend. The two communicated frequently while the banker possessed confidential details, including during a university basketball game at Cameron Crazies in North Carolina on November 9, 2021.</br><br>The friend purchased over 2.2 million shares of the target company’s stock at a cost of $53 million between November and December 2021, shortly after the CEO of the company hired the banker to advise on a potential sale in September of that year. After the acquisition was announced in February 2022, the friend realized $18.5 million in illegal profits, according to the complaint.</br><br>The SEC also sued the friend, noting that he was a former Bof A employee but not at the time of the alleged trading.

Bank of America was not accused of wrongdoing and declined to comment. Both individuals did not immediately respond to requests for comment.