Posts Tagged With Insider Trading

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Senior Information Systems Engineer at National Law Firm Charged with Insider Trading

On September 16, Dmitry Braverman, a systems engineer at the law firm Wilson Sonsini, was charged with insider trading for trading on material nonpublic information about potential merger and acquisition activity of at least eight clients of his employer, resulting in profits of approximately $300,000.  Braverman used his access to financial and billing databases to learn information about pending deals, which he traded on and used to tip others.  United States v. Braverman, 14-mj-2031
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Former SAC Capital Portfolio Manager Mathew Martoma Sentenced for Insider Trading

On September 8, Judge Paul G. Gardephe of the Southern District of New York sentenced Mathew Martoma, a former portfolio manager of CR Intrinsic Investors, LLC, a division of SAC Capital, to nine years in prison stemming from his participation in an insider trading scheme.  In addition, Martoma was ordered to pay $9.3 million in forfeiture.  Martoma was convicted in February of one count of conspiracy to commit securities fraud and two counts of securities
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Director of Investor Relations Firm Arrested for Insider Trading

On August 26, federal officials announced that Michael A. Lucarelli had been arrested on 13 counts of insider trading.  Lucarelli was the Director of Market Intelligence at Lippert/Heilshorn & Associates, Inc. (LHA), an investor relations firm.  According to the government, Lucarelli obtained material nonpublic information from working drafts of LHA’s clients’ press releases and used that information to trade in the stock of the firm’s clients.  Lucarellli allegedly obtained more than $500,000 in ill-gotten gains
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Stock Trader Gets Eighteen Months for Inside Trades Involving Microsoft

On July 25, a Seattle stock trader who pled guilty to trading on inside information he received from an employee of Microsoft Corp., including information regarding Microsoft’s 2012 investment in Barnes & Noble’s e-reader business, was sentenced to one and a half years in prison.  The trader, Sean Stokke, was also ordered to forfeit the $410,000 in illicit profits he obtained from the trades.  According to the government, Stokke provided the Microsoft employee, Brian Jorgensen,
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Former Qualcomm Executive Pleads Guilty to Insider Trading and Money Laundering

On July 21, Jing Wang, a former senior executive of Qualcomm Inc., pled guilty to insider trading in shares of Qualcomm and Atheros Communications Inc., and laundering the proceeds (totaling approximately $250,000) using an offshore shell company.  According to court documents, Wang purchased Atheros stock hours after Qualcomm’s board made a non-public offer to purchase Atheros and bought Qualcomm stock one day before Qualcomm announced record earnings results.  Wang also pled guilty to obstructing justice
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Second Circuit Denies Gupta’s Petition to Rehear Case

On July 14, the Second Circuit Court of Appeals declined to reconsider its March 25 decision affirming the insider trading conviction of former Goldman Sachs Group Inc. director Rajat Gupta.  Gupta, who was found to have passed tips from private Goldman board meetings to hedge fund manager Raj Rajaratnam, had argued in April that a Second Circuit panel wrongly affirmed his conviction in light of the district court’s exclusion of testimony from one of his
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Rengan Rajaratnam Acquitted of Insider Trading

On July 8, Rengan Rajaratnam, the younger brother of convicted Galleon Group founder Raj Rajaratnam, was acquitted by a jury in the Southern District of New York of conspiring to engage in insider trading. Rajaratnam’s acquittal was the first in the Southern District of New York after more than 80 consecutive convictions and guilty pleas in insider trading cases.  United States v. Rajaratnam, 13 Cr. 211 (S.D.N.Y.) DOJ Press Release.
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Second Circuit Hears Oral Argument in Insider Trading Appeal

On April 24, the Second Circuit heard oral arguments in the appeal of the insider trading convictions of Anthony Chiasson and Todd Newman, two former hedge fund managers who traded on nonpublic information about two technology companies.  The appeal centers on whether the government must prove that traders in possession of nonpublic information must know that the “tipper” of that information personally benefited from the disclosure.  In this case, the judge instructed the jury that
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Former KPMG Partner Sentenced for Insider Trading

On April 24, a former KPMG LLP partner who pled guilty to insider trading was sentenced to 14 months in prison and ordered to pay a $100,000 fine.  According to court documents, the ex-partner, who was willing to continue the scheme indefinitely, leaked confidential information about earnings announcements or acquisitions for KPMG clients to a friend in exchange for approximately $70,000 in cash and luxury gifts.  The friend, who pled guilty to insider trading charges
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Former Investment Banker Pleads Guilty to Insider Trading

On April 2, a former investment banker in Evercore Group LLC’s mining and metals group, Frank Perkins Hixon Jr., pled guilty to insider trading.  With knowledge of information he received advising Evercore clients on nonpublic transactions and in internal firm meetings, Hixon executed trades in brokerage accounts belonging to the mother of his child and his father, earning over $500,000 in profits.  Hixon also made false statements to FINRA and the FBI.  In 2013, Hixon
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