On March 15, 2017, former investment advisor David Hobson was sentenced to six months in prison for participating in a scheme to commit insider trading in connection with deals involving the pharmaceutical company (the “Pharma Company”) at which Michael Maciocio, Hobson’s co-conspirator, worked.  Hobson had pled guilty in this case to one count of conspiracy to commit securities fraud and one count of securities fraud in October 2016.  According to the indictment and statements made in court filings and proceedings, Maciocio was Hobson’s childhood friend, and Hobson also served as Maciocio’s investment adviser and broker.  Through his role as a master planner in the Active Pharmaceutical Ingredient Supply Chain Group at the Pharma Company, Maciocio learned about impending transactions.  Maciocio used the information he learned about these impending transactions to trade on his own behalf and to tip Hobson, who then used the information to trade for both himself and Maciocio.  Hobson also used this information to trade on behalf of some of his other clients.  United States v. Hobson, 1:16-cr-00351 (S.D.N.Y.). DOJ press release

Related Preceding Post