Posts Tagged With Insider Trading

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Nine Indicted for Insider Trading Allegations

On September 28, 2017, nine defendants were indicted on fraud charges based on allegations they traded on nonpublic information regarding an impending corporate acquisition, resulting in illegal profits of $866,629.  According to the indictment, in 2015 Shane Fleming, a vice president of corporate sales at Life Time Fitness, Inc. of Minnesota, obtained inside information about the sale of Life Time Fitness to two private equity firms.  This information was shared with his friend and business ... Continue Reading

Former CEO Charged with Insider Trading

On September 20, 2017, Peter C. Chang, the former President, CEO and Chair of the Board of Directors of Alliance Fiber Optic Products, Inc. (“AFOP”), was arrested and charged with securities fraud and fraud in connection with a tender offer.  AFOP, which is publicly traded on the NASDAQ, is a manufacturer of fiber optic components based in Sunnyvale, California.  According to the government, Chang acquired confidential information about AFOP based on his position in the ... Continue Reading

Five Individuals Charged with Participating in Three Insider Trading Schemes Generating More Than $5 Million in Profits on Inside Information Misappropriated from an Investment Bank

On August 16, 2017, five individuals were arrested and charged for their roles in overlapping insider trading schemes.    Michael Siva, Roberto Rodriguez, Rodolfo Sablon, Jhonatan Zoquier, and Jeffrey Rogiers were each charged with conspiracy, wire fraud, and multiple counts of securities fraud and fraud in connection with a tender offer.  The U.S. Attorney’s Office also announced the unsealing of guilty pleas from August 9, 2017 by Daniel Rivas and James Moodhe, who admitted to engaging ... Continue Reading

Investment Bank Vice President Pleads Guilty to Insider Trading

On August 10, 2017, Avaneesh Krishnamoorthy pled guilty to engaging in a scheme to commit insider trading.  Krishnamoorthy was the vice president and risk management specialist for a New York-based investment bank.  Through his position, he learned material nonpublic information concerning the acquisition of a company, whose shares are traded on the New York Stock Exchange, by a private equity fund.  He subsequently used this information and traded in the stock options of the company ... Continue Reading

William T. Walters Sentenced for Role in $43 Million Insider Trading Scheme

On July 27, William T. “Billy” Walters was sentenced to five years imprisonment, one-year supervised release, and a $10 million fine for conspiracy to commit insider trading.  Walters and his coconspirator, Thomas C. Davis, misappropriated nonpublic information about the financial performance of Dean Foods, the largest processor and distributor of fresh milk in the United States.  As member of Dean Foods’ board of directors, Davis passed along inside information to Walters in advance of public ... Continue Reading

Wall Street Investment Analyst Sentenced to 45 Months In Prison and Ordered to Pay $2.8 Million for Insider Trading

On July 26, Former analyst John Afriyie was sentenced to 45 months in prison, three years supervised release, and $2,780,720.02 in forfeiture and restitution, having been convicted of insider trading  in January.  While working for Apollo Investment Management LLC, a private investment fund, Afriyie trading on nonpublic information pertaining to a possible acquisition by the fund of ADT Corporation, trading on the information in 28 separate transactions over a two-week period.  Afriyie earned $1.5 million ... Continue Reading

Spouse of Lawyer at International Law Firm Charged with Insider Trading

On July 12, Fei Yan, a post-doctoral associate at a Cambridge, Massachusett university was arrested and charged with insider trading.  Yan allegedly traded in options to buy stock in Stillwater Mining Company based on nonpublic information regarding a corporate acquisition that he obtained from his spouse, a lawyer working on the acquisition for a private international law firm.  Yan’s internet search history reflected online research into how to commit insider trading while evading detection.  Yan ... Continue Reading

East Bay Resident Charged with Insider Trading in Ross Stores Securities

On May 31, 2017, Saleem Mohammad Khan was arrested and charged for his involvement in an insider trading scheme involving the securities of Ross Stores, Inc., which are traded on the NASDAQ stock exchange.  Khan allegedly received material nonpublic  information about the financial performance of Ross Stores, Inc. from an unnamed co-conspirator.  Khan used the information to buy and sell securities issued by Ross Stores and tried to conceal the scheme by sometimes using the ... Continue Reading

Four Charged in Scheme To Commit Insider Trading Based on Confidential Government Information

On May 24, 2017, four individuals were charged and arrested in connection with a scheme to obtain and trade on material nonpublic information from Centers for Medicare and Medicaid Services (“CMS”).  The individuals arrested are David Blaszczak, a political intelligence consultant, Christopher Worrall, an employee at CMS, Theodore Huber, a partner at a health-care-focused hedge fund in New York (the “Fund”), and Robert Olan, also a partner at the Fund.  According to the indictment, the ... Continue Reading

Former MLB Player Doug DeCinces and an Associate Found Guilty of Insider Trading Offenses for Using Non-Public Info to Trade Stocks

On May 12, 2017, former professional baseball player Doug DeCinces and associate David Parker were convicted of insider trading after a two-month trial in the Central District of California.  The government argued that DeCinces’s neighbor, James V. Mazzo, CEO of Advanced Medical Optics, Inc. (NYSE: EYE), told DeCinces that EYE was going to be acquired by Abbott Laboratories.  According to the prosecution, DeCinces then liquidated his stock portfolio, suffering $80,000 in losses, in order to ... Continue Reading

Acting Manhattan U.S. Attorney and FBI Assistant Director Announce Insider Trading Charges Against Law Firm Partner

On May 11, 2017, Walter C. Little, a former partner at an international law firm, and Andrew Berke were arrested and charged with insider trading.  According to the complaint, Little allegedly accessed law firm documents containing material nonpublic information relating to seven different companies, including information related to a client’s anticipated delisting from the NASDAQ exchange, pending M&A transactions and anticipated earnings announcements for multiple clients, and a client’s planned securities offering.  Little allegedly traded ... Continue Reading

Vice President and Risk Management Specialist at Investment Bank Charged with Insider Trading

On April 24, 2017, Avaneesh Krishnamoorthy, a vice president and risk management specialist at a Manhattan-based investment bank, was arrested and charged with insider trading, in connection with making $48,000 in profits from stock and options trading based on material nonpublic information about a private equity fund’s potential acquisition of a publicly traded company.  According to the complaint, through his position at the investment bank, Krishnamoorthy had access to material nonpublic information about mergers and ... Continue Reading

William T. “Billy” Walters Convicted of Insider Trading

On April 7, 2017, after a four-week trial before U.S. District Court Judge P. Kevin Castel in the Southern District of New York, William T. Walters was convicted of ten counts of conspiracy, securities fraud and wire fraud charges.  The charges related to his scheme to commit insider trading.  From 2008 through 2014, Walters received material non-public information about Dean Foods Company from Thomas C. Davis, a member of the Board of Directors of Dean ... Continue Reading

Former Investment Advisor Sentenced to Six Months’ Imprisonment for Insider Trading

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 ... Continue Reading

Former Global Law Firm Partner Convicted of Insider Trading

On March 15, 2017, a federal jury in the Eastern District of New York returned a guilty verdict against Robert Schulman, a former partner of a Richmond-based global law firm, for securities fraud and conspiracy to commit securities fraud.  According to the indictment, Schulman tipped off the executive of an investment advisory firm about a pending merger between Pfizer, Inc. and King Pharmaceuticals, Inc., which he had learned of through his representation of King Pharmaceuticals.  ... Continue Reading

Managing Director of Investment Bank Sentenced to 3 Years in Prison for Insider Trading

On February 17, 2017, Sean Stewart was sentenced to 36 months in prison by U.S. District Judge Laura Swain, for providing inside information to his father, Robert Stewart.  Sean Stewart, who was a former managing director at an investment advisory firm in Manhattan, was convicted after trial on August 17, 2016.  He provided inside information to his father about five health care company mergers and acquisitions before they were announced.  Sean Stewart’s father then traded ... Continue Reading

Investment Analyst Convicted of Securities Fraud and Wire Fraud for Insider Trading

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 ... Continue Reading

Director at Investment Bank Sentenced to Five Months in Prison for Insider Trading

On January 11, 2017, Steven McClatchey, a director at an investment bank in Manhattan, was sentenced to five months in prison in connection with an insider trading scheme.  According to the Complaint, Information and statements made in court proceedings, McClatchey learned about impending mergers and acquisitions as part of his employment with the investment bank, which advised companies involved in those deals.  From February 2014 to September 2015, McClatchey provided tips in advance of more ... Continue Reading

Manhattan U.S. Attorney Announces Arrest of Macau Resident and Unsealing of Charges against Three Individuals for Insider Trading Based on Information Hacked from Prominent U.S. Law Firms

On December 25, 2016, Iat Hong, a resident of Macau, was arrested in Hong Kong and is now pending extradition proceedings in connection with an alleged scheme to trade on material, nonpublic information obtained through hacks of multiple prominent U.S.-based international law firms.  On December 27, 2016, a thirteen count indictment against Hong and two alleged co-conspirators, Bo Zheng and Chin Hung, was unsealed in the SDNY.  According to the indictment, the defendants successfully obtained ... Continue Reading

Investment Adviser Pleads Guilty in Manhattan Federal Court to Insider Trading

On October 25, 2016, David Hobson, an investment adviser in the Providence, Rhode Island offices of two different brokerage firms, pled guilty in the Southern District of New York to one count of conspiracy to commit securities fraud for his role in a scheme to commit insider trading with his friend and client Michael Macioco. Between 2008 and 2014, Macioco breached his duty of confidentiality to his employer, an unnamed pharmaceutical company, by providing material ... Continue Reading

Broker-Dealer Gets Three Years in Prison for Trading on Inside Information Stolen from Prominent Law Firm

On September 30, 2016, Vladimir Eydelman was sentenced to 36 months in prison for participating in a five-year insider trading scheme that relied on information stolen from the international law firm Simpson Thacher & Bartlett LLP.  Eydelman traded on material nonpublic information provided to him by a brokerage client, Frank Tamayo, who had obtained the inside information from his law school classmate, Steven Metro, who was the managing clerk of the New York office of ... Continue Reading

Managing Director of Investment Bank Found Guilty of Insider Trading Charges

On August 17, Sean Stewart was convicted after trial of providing inside information to his father, Robert Stewart, to trade on five healthcare companies’ stocks in advance of acquisitions.  Sean Stewart was a vice president and managing director at two investment banks in Manhattan.  He provided inside information to his father, who traded the stocks personally and through a colleague—who later began cooperating with the government—based on the information.  Evidence showed that Robert Stewart used ... Continue Reading

Long Island Investment Advisor and Law Firm Attorney Indicted in Insider Trading Scheme

On August 10, Tibor Klein, founder and president of Klein Financial Services, and Robert Schulman, a former partner in a Richmond-based global law firm, were indicted on charges of securities fraud and conspiracy to commit securities fraud.  The indictment alleges that through his representation of King Pharmaceuticals in patent litigation, Schulman learned of a pending merger between King and Pfizer, Inc. in August 2010.  Schulman then allegedly revealed this information to Klein at a meeting ... Continue Reading

Principal Investigator in Clinical Trial Charged with Insider Trading

On August 4, 2016, Edward Kosinski pled not guilty to two counts of securities fraud-insider trading.  In 2014, Kosinski was working as a Principal Investigator for a clinical trial being run by Regado Biosciences, Inc., a company in which he owned 40,000 shares of common stock.  The government alleges that on June 29, 2014, he learned material non-public information through his role as a principal investigator about allergic reactions occurring in the clinical trial.  He ... Continue Reading