U.S. Authorities Charge Investment Banker for Insider Information Trading
- The insider trading scheme involving tips of key nonpublic information in coded email messages disguised as discussions about golf
The American Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Commission (SEC) today charged a father and son in New York with conducting a serial insider trading scheme involving tips of key nonpublic information in coded email messages disguised as discussions about golf.
The SEC alleges that Sean Stewart, currently a managing director at a prominent investment bank Perella Weinberg Partners, and who previously worked at JPMorgan Chase & Co, routinely tipped his father Robert with confidential information about future mergers and acquisitions involving clients of the two investment banks where he has worked during the past few years.
The elder Stewart, a certified public accountant and CFO of a technology company, cashed in on the tips by placing and directing highly profitable securities trades ahead of at least a half-dozen merger and acquisition announcements. The scheme generated approximately $1.1 million in illicit proceeds in a four-year period.
According to the SEC’s complaint filed in U.S. District Court for the Southern District of New York, Robert Stewart recruited a trading partner to help him hide his illegal trading and the connection to his son as the source of the nonpublic information about investment bank clients. Trades were conducted in the partner’s account, and the illicit profits were shared in the form small cash Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term to Robert Stewart to avoid creating a clear paper trail of the kickbacks. They also spread trades over numerous stock options series in an attempt to avoid raising red flags with regulators.
“Serial insider traders assume a huge risk that we will detect their pattern of trading and connect them to their source of confidential information,” said Daniel M. Hawke, Chief of the Division of Enforcement’s Market Abuse Unit. “We have integrated new technological tools to quickly and easily identify relationships among traders and spot suspicious trading across multiple securities.”
According to the SEC’s complaint, there were additional ways that Robert Stewart and his fellow trader attempted to conceal the scheme and evade detection when sharing nonpublic information obtained from Sean Stewart about investment bank clients. They primarily met in-person or used coded email messages to discuss the scheme and trading plans. Among examples of email text using golf terminology were “saw local story about high cost of golf reservations since a foreign company purchased all- even more expensive than imagined” and “might have an opportunity to play golf- but would need to book the reservation as soon as the office opens Tuesday morning.”
The SEC’s complaint charges Sean and Robert Stewart with violations of the antifraud provisions of the federal securities laws.
The American Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Commission (SEC) today charged a father and son in New York with conducting a serial insider trading scheme involving tips of key nonpublic information in coded email messages disguised as discussions about golf.
The SEC alleges that Sean Stewart, currently a managing director at a prominent investment bank Perella Weinberg Partners, and who previously worked at JPMorgan Chase & Co, routinely tipped his father Robert with confidential information about future mergers and acquisitions involving clients of the two investment banks where he has worked during the past few years.
The elder Stewart, a certified public accountant and CFO of a technology company, cashed in on the tips by placing and directing highly profitable securities trades ahead of at least a half-dozen merger and acquisition announcements. The scheme generated approximately $1.1 million in illicit proceeds in a four-year period.
According to the SEC’s complaint filed in U.S. District Court for the Southern District of New York, Robert Stewart recruited a trading partner to help him hide his illegal trading and the connection to his son as the source of the nonpublic information about investment bank clients. Trades were conducted in the partner’s account, and the illicit profits were shared in the form small cash Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term to Robert Stewart to avoid creating a clear paper trail of the kickbacks. They also spread trades over numerous stock options series in an attempt to avoid raising red flags with regulators.
“Serial insider traders assume a huge risk that we will detect their pattern of trading and connect them to their source of confidential information,” said Daniel M. Hawke, Chief of the Division of Enforcement’s Market Abuse Unit. “We have integrated new technological tools to quickly and easily identify relationships among traders and spot suspicious trading across multiple securities.”
According to the SEC’s complaint, there were additional ways that Robert Stewart and his fellow trader attempted to conceal the scheme and evade detection when sharing nonpublic information obtained from Sean Stewart about investment bank clients. They primarily met in-person or used coded email messages to discuss the scheme and trading plans. Among examples of email text using golf terminology were “saw local story about high cost of golf reservations since a foreign company purchased all- even more expensive than imagined” and “might have an opportunity to play golf- but would need to book the reservation as soon as the office opens Tuesday morning.”
The SEC’s complaint charges Sean and Robert Stewart with violations of the antifraud provisions of the federal securities laws.