SEC Charges Top New York-based Investment Bank Official with Insider Trading
Linus Unah – Fourth Estate Contributor
Washington, D.C., United States (4E) – The U.S. Securities and Exchange Commission (SEC) has charged a vice president in the risk management department of a New York-based investment bank with insider trading.
The SEC alleged that Avaneesh Krishnamoorthy learned that private equity firm Golden Gate Capital planned to acquire publicly-traded technology company Neustar Inc., and he then began trading in Neustar securities.
The trading took place in two brokerage accounts that Krishnamoorthy allegedly kept hidden from his employer, which had been approached by Golden Gate Capital to finance the transaction.
According to the SEC’s complaint, Krishnamoorthy made about $48,000 in illegal profits.
“As alleged in our complaint, Krishnamoorthy was entrusted with confidential, market-moving information by his employer and he misused it for personal gain,” Andrew M. Calamari, director of the SEC’s New York office, said in a statement.
The SEC is seeking an emergency court order to freeze the assets in the brokerage accounts belonging to Krishnamoorthy and his wife.
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