A former Wall Street investment banker Sean Stewart who was previously employed at Perella Weinberg Partners and JPMorgan Chase & Co has been accused of insider trading by supplying inside information to his father about unannounced healthcare mergers. This included details relating to INC Research’s 2011 acquisition of Kendle International Inc.
Sean Stewart believed his father would keep the information secret and not trade on it.
According to prosecutors, Robert Stewart, the father and Richard Cunniffe, an acquaintance who worked at a boutique investment bank, made $1.16 million trading on tips about five healthcare deals provided by Sean Stewart.
The case has resulted in guilty pleas by Robert Stewart and Cunniffe who was alleged to have secretly recorded the elder Stewart saying his son had criticised him for not trading on a tip who said: “I handed you this on a silver platter and you didn’t invest in this”.
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Sean Stewart is expected to argue he believed his father would keep the information secret and not trade on it, according to sources.
Prosecutors say evidence shows his father used some trading profits to pay over $10,000 toward his son’s wedding.
Stewart’s lawyers have called linking the payment to the trading “ludicrous” since it is customary for a groom’s parents to pay for some wedding costs.