Posts Tagged With Insider Trading

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Three Men Arrested and Charged With Trading on Inside Information Misappropriated From a Credit Rating Agency

On June 26, three men were arrested and charged with participation in a scheme to trade on material nonpublic information which one of the men, Sebastian Pinto-Thomaz, received through his job at a credit rating agency.  Pinto-Thomaz gave two friends information regarding an upcoming acquisition of the Valspar Corporation by the Sherwin-Williams Company.  Each of Pinto-Thomaz’s friends reaped more than $100,000 in profits as a result of trades executed on the basis of this information.  
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Investment Bank Vice President Arrested, Charged with Conspiracy and Securities Fraud in Insider Trading Scheme

On May 31, a complaint filed in Manhattan federal court charged Woojae Jung, the vice president at an investment bank, with conspiracy and securities fraud in connection with an insider trading scheme.  The complaint alleges that Jung obtained material non-public information through his position at the investment bank and, working with a co-conspirator located in South Korea, used this information to conduct securities trades through a brokerage account held in the co-conspirator’s name.  The complaint
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Former Currency Trader Indicted for Participating in Antitrust Conspiracy

On May 10, 2018, officials announced that a federal grand jury returned an indictment against a former currency trader at a large U.S. bank for his alleged role in a conspiracy to manipulate foreign currency prices.  Akshay Aiyer is accused of participating in a conspiracy with other New York based traders who worked for rival institutions to fix prices and suppress competition in the markets for Central and Eastern European, Middle Eastern, and African (“CEEMEA”)
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Four Defendants, Including Centers for Medicare and Medicaid Services Employee, Convicted in Insider Trading Scheme

On May 4, 2018, four defendants were convicted of trading on confidential nonpublic government information, following a four-week jury trial.  As part of defendants’ insider trading scheme, Christopher Worrall, an employee of the Centers for Medicare and Medicaid Services, provided confidential information to David Blaszczak, a political intelligence consultant.  Blaszczak then passed this information along to several employees at Deerfield Management Company, a hedge fund that retained Blaszczak as a consultant during the relevant time
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Cambridge, Massachusetts Man Sentenced in Manhattan Federal Court for Insider Trading

On March 30, 2018, Fei Yan, a post-doctoral associate at a university located in Cambridge, Massachusetts, was sentenced to 15 months in prison for insider trading.  Yan’s spouse worked at an international law firm where she learned material nonpublic information concerning the acquisition of Stillwater Mining Company, a publicly traded company whose shares are listed on the New York Stock Exchange.  According to court filings, while his spouse was working on the potential merger, Yan
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Former CEO of Tech Company Pleads Guilty to Insider Trading

On February 21, 2018, Peter C. Chang, the former President and CEO of Directors of Alliance Fiber Optic Products (“AFOP”), pleaded guilty to insider trading and tender offer fraud.  AFOP, which is publicly traded on the NASDAQ, is a manufacturer of fiber optic components.  As part of his guilty plea, Chang admitted that he traded AFOP stock through brokerage accounts in the names of his wife and brother sold AFOP stock before two public announcements
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Former Principal Investigator of Biopharmaceutical Company Found Guilty of Insider Trading

On November 28, 2017, a federal jury in Hartford, Connecticut found Edward J. Kosinski guilty of two counts of insider trading.  U.S. District Judge Vanessa L. Bryant presided over the trial, which lasted just over two weeks.  At trial, the government presented evidence that, in January 2014, Kosinski entered into an agreement with an agent of Regado Biosciences, Inc. (“Regado”) to act as a principal investigator for Regado’s clinical trial.  Kosinski owned 40,000 shares of
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Former Partner at International Law Firm Pleads Guilty to Insider Trading

On November 10, 2017, Walter C. Little, a former partner at an international law firm, pled guilty to conspiracy to commit securities fraud.  Between February 2015 and May 2016, Little used his position at the firm to access material nonpublic information relating to a client’s anticipated delisting from the NASDAQ exchange, clients’ involvement in M&A transactions, clients’ anticipated earnings announcements, and a planned securities offering.  With this information, Little made securities trades and shared that
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Spouse of Lawyer at International Law Firm Pleads Guilty to Insider Trading

On October 30, 2017, Fei Yan, a post-doctoral associate at a university located in Cambridge, Massachusetts pled guilty to insider trading.  Yan’s spouse worked at an international law firm where she learned material nonpublic information concerning the acquisition of Stillwater Mining Company, a publicly traded company whose shares are listed on the New York Stock Exchange.  While his spouse was working on the potential merger, Yan conducted online research into how to commit 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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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. 
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