Tag Archives: Inside Trading

Ex-JPMorgan Banker Convicted of Insider Trading

Law360, New York (August 17, 2016, 10:18 AM ET) — A federal jury in Manhattan on Wednesday found former JPMorgan Chase & Co. banker Sean Stewart guilty of insider trading, for what prosecutors say was a scheme to leak confidential information about health care company mergers to his father.

Sean Stewart, left, leaves Manhattan federal court with his lawyer Mark Gombiner after opening statements in Stewart’s insider trading trial in July in New York. (Credit: AP) On the morning of the sixth day of deliberations, the jury of eight women and four men convicted Sean Stewart…

Source: Law360

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Prosecution says ex-Wall Street banker lied in insider trading trial

U.S. prosecutors on Monday sought to brand a former Wall Street investment banker as a liar after he took the stand in his own defense to deny engaging in a years-long insider trading scheme with his father.

In her closing argument, Assistant U.S. Attorney Sarah McCallum urged a federal jury in Manhattan to reject a “web of lies” conveyed during testimony by Sean Stewart, an ex-banker at Perella Weinberg Partners and JPMorgan Chase & Co.

While Stewart, 35, had testified that he never intended to help his father profit through insider trading, McCallum said evidence, ranging from emails to trading records, and the testimony of a cooperating witness showed his testimony was “ridiculous.”

“This is no place for stories,” she said. “It is a place for evidence.”

Martin Cohen, Stewart’s lawyer, sought to show his client’s story was supported by evidence.

While Stewart may have in violation of his employers’ policies by speaking with his family about confidential matters at his work, Cohen said, he never did so intending to help his father, Robert Stewart, to illegally trade on the information.

Read on.

Hedge fund Visium’s Valvani who was arrested for inside trading charges found dead in apparent suicide: Police


Sanjay Valvani, a hedge fund manager at Visium Asset Management who was arrested last week on insider trading charges, has been found dead in an apparent suicide, the police said on Tuesday.

Valvani, 44, was discovered by his wife on Monday evening at his Brooklyn residence with a wound to his neck, a New York Police Department spokeswoman said. A suicide note has been recovered, as well as a knife, she added.

BREAKING: Ex-Capital One Analyst Found Liable For Insider Trading

Law360, Philadelphia (January 13, 2016, 1:00 PM ET) — A former Capital One analyst engaged in insider trading by using proprietary data about consumer credit card transactions to trade ahead of earnings reports from a string of major retailers and restaurant chains, a Pennsylvania jury concluded on Wednesday.

The jury agreed that Nan Huang, who was slapped with a complaint by the U.S. Securities and Exchange Commission last January, had gotten an unfair advantage by using Capital One’s private data to forecast revenue for companies including Chipotle Mexican Grill, Macy’s and Best Buy.

Source: Law360

“High Profile” CEO Of China Brokerage “Disappears”: “Company Says Can’t Find Him”


As we outlined in September, Beijing’s “kill the chicken to scare the monkey” campaign has brokers, hedgies, and even securities regulators so terrified, that one money manager said the following to his friend after being “summoned” by Chinese authorities: “If I don’t come back, look after my wife.”

Earlier this month, WSJ took a look at China’s case against Xu Xiang, who runs Shanghai-based Zexi Investment. Xu is accused of insider trading and stock manipulation and not only did Beijing detain him, they also froze his parents’ accounts. “After Xu Xiang was arrested, many people got nervous,” one fund manager told The Journal. “I don’t want to get arrested,” said another.

Around the same time the media picked up on the Xu story, another CSRC official was arrested in China. Yao Gang, vice chairman of the securities regulator, is now under investigation for graft, Reuters reported a little over a week ago, noting that Yao is the second official from the capital markets watchdog to come under scrutiny.

This is the backdrop against which Guotai’s Chairman and CEO Yim Fung went “missing” on November 18. 

Morgan Stanley Insider Trading Case Goes To NY Jury

Law360, New York (November 12, 2015, 4:01 PM ET) — A New York federal jury on Thursday began deliberations in a Russian oligarch’s suit accusing Morgan Stanley of insider trading at the height of the 2008 financial crisis after a judge rejected the bank’s midtrial bid to dismiss the claims.

The eight-member jury began deliberations after hearing closing arguments in the civil suit by Veleron Holding BV, an investment vehicle whose parent company, OJSC Russian Machines, is owned by tycoon Oleg Deripaska. Veleron has accused Morgan Stanley of short-selling the stock of a Canadian auto parts…

Source: Law360

SEC Loses Insider Trading Case On Home Court

Law360, New York (September 14, 2015, 3:44 PM ET) — An in-house judge at the U.S. Securities and Exchange Commission dismissed an insider trading case Monday against a former Wells Fargo representative, on the grounds that the enforcement division failed to meet its burden under both the Second Circuit’s Newman decision and an earlier U.S. Supreme Court holding.

An in-house judge found Monday that the SEC did not meet its burden of showing Joseph Ruggieri’s alleged tipper gave him information in exchange for a personal benefit under the Second Circuit’s Newman ruling and the Supreme Court’s…

Source: Law360

Ex-JPMorgan Banker’s Dad Cops To Insider Trading Scheme

Law360, New York (August 12, 2015, 11:34 PM ET) — The father of a former JPMorgan Chase & Co. investment banker pled guilty Wednesday to trading on stock tips his son provided ahead of five health care industry mergers in which he was involved.

Robert Stewart, the father of Sean Stewart, a former vice president in JPMorgan’s health care group and most recently a managing director at Perella Weinberg Partners LP, was allegedly tipped off by his son about the deals, allowing him and his business associate to reap more than $1 million in illegal profits….

Source: Law360

Ex-JPMorgan Banker, Father Charged With Insider Trading

Law360, New York (May 14, 2015, 1:15 PM ET) — New York federal prosecutors on Thursday charged a former JPMorgan Chase & Co. investment banker and his father with insider trading ahead of five health care industry mergers.

Former JPMorgan Chase & Co. investment banker Sean Stewart was charged on Thursday with insider trading in a New York district court. (Credit: Getty) Sean Stewart, a former vice president in JPMorgan’s health care group who now works as a managing director at Perella Weinberg Partners LP, was charged in a criminal complaint along with his father, Robert…

Source: Law360

Ex-Wells Fargo employees to face insider trading trial, judge rules

Feb 26 (Reuters) – An administrative judge has cleared the way for U.S. regulators to take two former Wells Fargo & Co employees to trial in a closely watched case testing the limits of insider trading laws.

U.S. Securities and Exchange Commission Administrative Law Judge Jason Patil in an order Wednesday called it an “exceedingly close matter” of whether a recent federal appellate court ruling on insider trading required tossing the charges against Gregory Bolan and Joseph Ruggieri.

The SEC alleged that Bolan, a research analyst, tipped Ruggieri, a trader, about upcoming upgrades and downgrades in ratings of various companies, allowing Ruggieri to make more than $117,000 in profits for Wells Fargo.

 The SEC, which brought the case in September, said Bolan also tipped off a friend, who was able to reap $10,000. The friend has since died.