Insider trading suspect was Electronic Data Systems Corp. hero in '79

Sep 25, 2009 (The Dallas Morning News - McClatchy-Tribune Information Services via COMTEX) -- EDS | Quote | Chart | News | PowerRating -- In 1979, a young Iranian employee of Electronic Data Systems Corp. played a central role in helping the company, then based in Dallas, rescue two American co-workers from an Iranian prison as a revolution brewed.

After the EDS team made a harrowing, covert escape into Turkey, Ross Perot escorted the group back to Dallas, intervening with immigration officials to bring the Iranian employee to safety in the U.S.

Three decades later, the same man, Reza Saleh of Richardson, stands accused by the Securities and Exchange Commission of pocketing $8.6 million from illegal insider trading around the planned sale of Perot Systems Corp. to Dell Inc.

Saleh, now 53, is employed by Parkcentral Capital Management LP, an affiliate of Perot Investments. Neither he nor his attorney could be reached for comment.

"Ross Perot Sr. and Ross Perot Jr. are both saddened and stunned by this whole turn of events," Parkcentral said in a statement Thursday evening after questions from The Dallas Morning News.

"Reza has been a close friend of the family for the last three decades, and it troubles them deeply to learn of these allegations. He has made many contributions to the various Perot businesses over the years, and the courage he showed as a young man in his early 20s in helping secure the freedom of the EDS executives held captive in Iran was nothing short of miraculous. We will, of course, continue to cooperate fully in the investigation."

It's a remarkable transformation for a man who was hailed as a hero by the elder Perot, founder of EDS and Perot Systems.

Saleh's role in the famous rescue mission was documented in the book On Wings of Eagles and a subsequent television movie, but author Ken Follett used the pseudonym "Rashid" for Saleh when the book was published in 1983 to protect his family members who remained in Iran.

A reader pointed to Saleh's identity as Rashid in an e-mail Thursday, the day after the SEC filed its lawsuit against Saleh in U.S. District Court in Dallas. And Ross Perot Sr. confirmed Saleh's identity after being contacted by The News.

Rescue in Iran

In the book, which Perot pitched to Follett and which Perot has said is faithful to what actually happened, Saleh is described as "a lively and imaginative young Iranian systems engineer."

At the time, EDS was establishing one of its first overseas offices in Tehran to help the government of Iran modernize its rudimentary social security system. But the country was running out of money and unable to pay its bills to EDS, and religious groups were agitating against the ruling shah.

Follet wrote that most of the EDS team was able to evacuate but that the Iranian government, afraid that shutting down the social security system would further anger its citizens, detained two top EDS officials to try to force them to keep the system running.

After negotiations to secure their release failed, Perot decided to rescue his employees.

During the course of the long, complex rescue mission organized by Perot and spearheaded by retired Special Forces legend Col. Arthur "Bull" Simons, Saleh proved instrumental in freeing the employees from prison by instigating a riot outside the building, and he shepherded the group through Iran and across the border into Turkey.

Perot, in turn, brought Saleh to Dallas, even securing him a spot aboard the jet that ferried the EDS crew home on the final leg from England.

Along the way, Follett wrote, Perot intervened to get Saleh through various immigration stations.

"He has saved American lives, and I won't have him hassled when we get to the States," Perot is quoted as saying.

The book says Perot sat next to Saleh on the final descent into Dallas, cataloging the sights outside the window.

After describing the triumphant return to Texas, Follett noted only that Saleh "continued to work for EDS in various parts of the world."

According to the SEC, in early September, Saleh learned that Perot Systems was negotiating a sale of the company to Dell for $3.9 billion.

Before the deal became public knowledge Monday, Saleh bought, through two TD Ameritrade accounts, at least 9,332 call options, which allow the bearer to buy Perot shares at a preset price.

When the Dell-Perot deal went public, the value of the shares shot up 65 percent and, the SEC said, Saleh sold the similarly more valuable options, netting a profit of a little over $8.6 million.

Accounts frozen

But he was able to withdraw only $5,000 before the accounts were frozen, the SEC said.

"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," Rose Romero, director of the SEC's Fort Worth regional office, said in a statement Wednesday.

A second man, Amir Saleh, 49, whose relationship with Reza Saleh is unknown, is named in the SEC lawsuit as having received a portion of the illicit gains. He also couldn't be reached for comment.

The SEC handles only civil complaints, but the U.S. attorney's office could pursue criminal charges.

"We were very disappointed to learn of the alleged actions of our employee, Reza Saleh," Parkcentral said in a statement late Wednesday.

"We have very clear policies in place that prohibit actions such as those alleged by the Securities and Exchange Commission, and we have placed Mr. Saleh on immediate administrative leave pending the outcome of this investigation."

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