The Securities and Exchange Commission has declared additional charges related to an insider trading case against two brokers who acted on non-public information obtained in advance of IBM Corporation's acquisition of SPSS.

In an amended complaint filed in federal court in Manhattan, NY, the SEC said it is now charging research analyst Trent Martin, the brokers' source of information in the scheme that harvested over $1 million in illicit profits.

Martin, who worked at a Connecticut brokerage firm, allegedly acquired non-public information about the IBM-SPSS transaction from an attorney friend who was working on the deal.

"The SEC alleges that Martin's attorney friend expected him to maintain information in confidence and refrain from illegal trading or disclosing it to others," the authority said in its statement. "The attorney sought moral support, reassurance, and advice when he privately told Martin about his new assignment working on the IBM-SPSS acquisition."

However, Martin purchased SPSS securities and then tipped his roommate, Thomas Conradt, who subsequently traded and tipped his friend and fellow retail broker David Weishaus.

"Martin was specifically named as their source in instant messages between Conradt and Weishaus about their illegal trading," the SEC said.

The authority charged Conradt and Weishaus with insider trading on November 29, 2012. Martin fled the US to Australia after learning about the investigation and currently lives in Hong Kong.  

The SEC's complaint alleges that Martin, Conradt and Weishaus violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. The authority is seeking disgorgement of ill-gotten gains with prejudgment interest and financial penalties, and a permanent injunction against the brokers.