Friday, May 4, 2007
A junior investment banker in Credit Suisse's energy banking group in Manhattan, Hafiz Muhammed Naseem, was arrested yesterday for trading in inside information about nine deals, including the TXU buyout. The allegations are classic Rule 10b-5 fraud -- his desk was near a copying machine where documents concerning the deals were reproduced, and he passed on the information to a banker in Pakistan, who made the trades in Naseem's brokerage account, as well as tipping others. Allegedly they made $7.5 million in illegal trading profits. See NYTimes, Wall St. Banker Jailed in Trading on 9 Deals. WSJ, Credit Suisse Banker Charged With Insider Trading.