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In this Saturday, Oct. 18, 2014 photo, Julita Laude, mother of killed transgender Jennifer Laude, talks to reporters during a rally near the USS Peleliu, where U.S. Marine Pfc. Joseph Scott Pemberton is said to be held, at the Subic Bay free port, Zambales province, northern Philippines. The killing of Jennifer Laude, a 26-year-old transgender whose former name was Jeffrey, has sparked public anger in the Philippines and revived a debate over the U.S. military presence in a country seen by Washington as a major ally in Southeast Asia. (AP Photo/Aaron Favila)
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This July 28, 2014, photo shows Jakob Denzinger's portrait on the tombstone of his empty grave in Cepin eastern Croatia. Denzinger is among dozens of death camp guards and suspected Nazi war criminals who collected millions of dollars in Social Security payments despite being forced out of the United States according to an Associated Press investigation. (AP Photo/Darko Bandic)
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This undated file photo provided by the Allegheny County District Attorney shows University of Pittsburgh medical researcher Dr. Robert Ferrante. Jury selection is set to begin for the start of his trial Oct. 21, 2014, in Pittsburgh on charges in the cyanide poisoning death of his neurologist wife, Autumn Klein, chief of women's neurology at the University of Pittsburgh Medical Center. Klein died in April of 2013 after suddenly falling ill. (AP Photo/Allegheny County District Attorney, File)
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This Jan. 23, 2014, file photo shows New Jersey Gov. Chris Christie addressing a gathering at the Dudley Family School in Camden, N.J. Lawyers for a state legislative panel investigating a political payback scandal say a former aide to Gov. Christie has shown no valid legal reasons for refusing to comply with a subpoena. (AP Photo/Mel Evans, File)
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NEW YORK (AP) — U.S. federal prosecutors have charged two Brazilian nationals with insider trading in connection with 3G Capital's $3.26 billion acquisition of Burger King in 2010.

The complaint announced Monday alleges that Waldyr Prado, a 43-year-old former Wells Fargo financial adviser, and one of his brokerage clients, Igor Cornelsen, illegally profited from insider information about the Burger King deal after Prado learned about it from another client who had invested in private-equity firm 3G.

Prado and Cornelsen, a 65-year-old director of an investment company based in the British Virgin Islands, live in Brazil and have not yet been arrested, according to the office of Preet Bharara, U.S. Attorney for the Southern District of New York, and the Federal Bureau of Investigation. Bharara's office did not immediately know what the next step would be in the proceedings. Prado left the U.S. for Brazil in 2012 after being deposed in a lawsuit brought against both men by the Securities and Exchange Commission, telling his U.S.-based supervisor that he feared he would be charged with perjury and that Brazil has no "extradition policy."

According to the criminal complaint unsealed Monday, one of Prado's clients invested in 3G Capital and in March 2010 was told by that company that it was in talks to buy Burger King. The investor signed a confidentiality agreement with 3G related to the deal, but was allowed to discuss its merits with Prado based on his role as financial adviser. But Prado "misappropriated" the information and purchased Burger King stock and options, say prosecutors.

The complaint states that Prado emailed Cornelsen in May 2010 revealing that he had "some info that I cannot say over the phone...You have to hear this." From May through August, Cornelsen purchased Burger King options. After 3G's September 2010 announcement that it planned to buy Miami-based Burger King, Prado and Cornelsen sold their holdings in the fast-food chain for profits of more than $175,000 and about $1.68 million, respectively.

The two are charged with securities fraud and fraud in connection with a tender offer, which each carry a maximum term of 20 years in prison. They are also charged with conspiracy to commit securities fraud and fraud in connection with a tender offer, which carries a maximum term of five years in prison.

Messages left with Cornelsen's attorney Monday evening weren't immediately returned. Prado couldn't immediately be reached for comment, and it is unclear if he is currently represented by counsel.
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