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by Mike Caswell

Luis Sanchez, a Spanish resident facing an insider trading case from the U.S. Securities and Exchange Commission for buying call options in Potash Corp. of Saskatchewan Inc., has asked the the courts to dismiss the case for lack of evidence. Mr. Sanchez, a 37-year-old trader, admits that he made $497,000 in risky options trading ahead of a takeover offer for Potash Corp. (All figures are in U.S. dollars.) However, he says there is nothing to indicate that his profit was anything more than a successful bet on a stock.

The SEC claims that Mr. Sanchez and another Spanish resident, Banco Santander SA analyst Juan Garcia, bought out-of-the money call options for Potash Corp. in August, 2010. The purchase came just days before BHP Billiton PLC offered to acquire the company for $130 per share. The options, which Mr. Garcia and Mr. Sanchez had purchased for $61,168, were worth $1.12-million after the takeover offer was announced.

Mr. Garcia settled the case out of court on May 3, 2011, agreeing to disgorge $626,033 in illegal profits and to pay a $50,000 civil fine. He did not admit to any wrongdoing in settling the case.

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