Oct 31 (Reuters) - Federal prosecutors charged a

Pennsylvania man on Thursday with insider trading for using tips

from his domestic partner to trade illegally ahead of CVS

Health's ( CVS ) $9.5 billion purchase last year of primary care

provider Oak Street Health.

Carlos Sacanell, 58, of Willow Grove, was also charged with

lying to the FBI by denying having received the tips before the

takeover was announced in February 2023. The U.S. Securities and

Exchange Commission filed a related civil case against Sacanell.

A lawyer for Sacanell did not immediately respond to

requests for comment. The office of U.S. Attorney Jacqueline

Romero in Philadelphia said Sacanell was arrested on Thursday at

his home.

Authorities said Sacanell generated $617,000 trading in Oak

Street stock and options after his partner, a senior Oak Street

executive, shared material non-public information about the

planned takeover.

The SEC said the trading began two days after Sacanell's

partner, who had learned a takeover might be in the offing,

lamented in a text message that it was "very uncomfortable

having information I can't share."

Sacanell texted back that his partner should tell inquiring

co-workers you don't know what's going on, the SEC said.

The partner was not charged.

CVS, the drugstore chain and pharmacy benefits manager,

agreed to buy Oak Street for $39 per share, 50% above where the

stock traded shortly before news of the takeover became public,

the SEC said.

Oak Street's share price rose 36% over the next two days,

including after CVS announced the takeover. CVS valued the

transaction at $10.6 billion including debt.