Bahrain-based United Gulf Bank (UGB) said the US Securities and Exchange Commission (SEC) had dropped charges against the bank related to a case of share manipulation by a Kuwaiti financier.

"(The SEC) has filed an amended complaint and sought an order from the court totally dismissing all charges against the bank in the case against the former chief executive officer of the Al Raya Investment Company," it said in a statement.

UGB, the investment banking arm of Kuwait Projects Company, was involved in trades on the New York Stock Exchange by Al Raya's late chief executive Hazem Al Braikan, who was found dead in August 2009 after the charges against him became public.

The SEC that month filed a lawsuit against Al Braikan, UGB and its Kuwaiti unit Kamco, accusing them of having improperly earned millions of dollars from trades in shares of two US firms, Harman International Industries and Textron.

UGB said charges against Kamco had also been dropped. – TradeArabia News Service