On January 30, 2017, John Afriyie, a former analyst at a Manhattan-based private investment fund (the “Fund”), was convicted of securities fraud and wire fraud for insider trading, after a jury trial.  According to the Indictment and the evidence presented at trial, in January 2016, Apollo Investment Management LLC (“Apollo”) contacted the Fund about whether the Fund would provide debt financing for a possible acquisition by Apollo of ADT Corporation.  After entering into a non-disclosure agreement with Apollo, the Fund was granted access to confidential documents concerning the ADT transaction.  Afriyie accessed material nonpublic information about this impending acquisition in an electronic shared drive folder on the Fund’s network server.  Between January 28, 2016 and February 12, 2016, before the acquisition was publicly announced, Afriyie purchased 2,279 ADT Corporation call options in 28 separate transactions.  He purchased these call options using a brokerage account that he controlled, which was in the name of his mother.  After the acquisition was announced in February 2016, ADT Corporation shares increased in value.  Accordingly, by subsequently selling the ADT Corporation options, Afriyie generated more than $1.5 million in profits.  United States v. Afriyie, No. 16-CR-377 (S.D.N.Y.). DOJ Press Release

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