U.S. authorities charged a brokerage employee and three traders for allegedly operating an insider trading scheme based on advance knowledge of planned securities offerings.<\/p>\n
According to an indictment that was unsealed today in a federal court in Brooklyn, between 2018 and 2024, the alleged perpetrators of an insider trading scheme used material non-public information about upcoming secondary stock offerings to generate more than US$1 million in illicit trading profits.<\/p>\n
The inside information \u2014 including details on the size, timing, pricing and structure of secondary offerings \u2014 came from a variety of sources, U.S. authorities alleged, including a brokerage employee that allegedly uncovered information about forthcoming deals from their underwriters.<\/p>\n
The brokerage employee, David Cooper, and the traders who allegedly traded on the insider tips, Randy Grewal, John Lowe and Richard Ringel, have been charged with securities fraud and conspiracy to commit securities fraud.<\/p>\n
“Cooper shared the [inside information] to induce broker-dealer customers, including Lowe and Ringel, to commit to buy shares in the offerings so that Cooper and broker-dealer would receive compensation from the underwriters,” U.S. authorities alleged.<\/p>\n
The allegations have not been proven, and the defendants are presumed to be innocent.<\/p>\n
Cooper was arrested and arraigned today in New York. The traders were arrested in Arizona and Florida, and will be arranged in the Eastern District of New York at a later date.<\/p>\n","protected":false},"excerpt":{"rendered":"
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