March 1 (Reuters) - The U.S. Justice Department and the Securities and
Exchange Commission filed insider trading charges against several Wall Street
traders, two lawyers and three hedge funds on Thursday.
Authorities accused them of using secret codes, clandestine meetings and cash
kickbacks to profit by trading ahead of UBS research analyst upgrades and
downgrades and corporate acquisition announcements by Morgan Stanley clients. For
a full story click on [ID:nN01369197]. For a Factbox Inside the alleged insider
trading click on [ID:nN01303781].
Criminal and civil charges were filed in federal court in Manhattan and
included the following:
NAME COMPANY CRIMINAL CIVIL
CHARGES CHARGES
Paul Risoli Bank of America Wire fraud, bribery, --
employee (BAC.N) conspiracy
Robert Babcock Bear Stearns & Co Securities fraud, Illegal trades on
registered rep. BSC.N conspiracy non-public info.
from UBS, Morgan
Samuel Childs Assent LLC Wire fraud, bribery --
registered rep. conspiracy
Laurence McKeever Assent LLC Wire fraud, bribery --
registered rep. conspiracy
Randi Collotta Morgan Stanley Securities fraud, Tipped non-public
attorney (MS.N) conspiracy info from Morgan
Chris Collotta Private attorney Securities fraud, Tipped non-public
conspiracy info. from wife
Erik Franklin Lyford Cay Capital Securities fraud, Traded on
analyst Chelsey Capital bribery, conspiracy non-public info.
from UBS, Morgan
David Glass Jasper Capital Securities fraud, Traded on
owner conspiracy non-public info.
linked to UBS
Mitchel Guttenberg UBS Securities fraud, Tipped non-public
client manager (UBSN.VX) conspiracy info.
David Tavdy Assent LLC Securities fraud, Traded on
trader Jasper Capital conspiracy non-public info.
linked to UBS
Marc Jurman Marlins Capital Securities fraud, Traded on
registered rep. Finance 500 Inc. conspiracy non-public info.
linked to Morgan
Mark Lenowitz Chelsey Capital Securities fraud, Traded on
trader Q Capital conspiracy non-public info.
linked to UBS
Ken Okada Bear Stearns Securities fraud, Traded on
registered rep. conspiracy, non-public info.
false statements from UBS, Morgan
Andrew Srebnik Bear Stearns -- Traded on
registered rep. non-public info.
linked to UBS
Q Capital Investment Partners, LP -- Traded on
non-public info.
from UBS, Morgan
Chelsey Capital -- Traded on
non-public info.
linked to UBS
Jasper Capital -- Traded on
non-public info.
linked to UBS
(Source: SEC statement, federal indictments)
