Wednesday, June 1, 2016
The DOJ is pursuing criminal and civil charges against a former Barclays banker for allegedly paying for renovation of his bathroom with insider tips:
According to the complaint, McClatchey began tipping the Long Island-based plumber, a friend, in 2013, enabling him to execute trades ahead of merger announcements involving 11 companies, including Forrest Oil Corp and PetSmart Inc.
In exchange, the plumber made thousands of cash payments to McClatchey, in some instances placing cash in a gym bag that the banker brought with him to a marina in Long Island, and also provided home renovation services.
I think even under Newman free plumbing services is going to count as a personal benefit. Here's the civil complaint. The SEC is alleging that McClatchey received cash as well as bathroom renovation services in exchange for insider tips on upcoming mergers.