Saturday, April 30, 2005

Criminal and Civil Insider Trading Charges Against Six

The U.S. Attorney's Office for the Central District of California (Los Angeles) and the SEC announced the filing of criminal and civil insider trading charges against two former employees of the investment banking firms, Chanin & Co. LLC and Houlihan Lokey Howard & Zukin, Inc., and four tippees for trading on material nonpublic information about the following companies: NCS Healthcare, Inc., The DeWolfe Companies, Inc., Prime Retail, Inc., and Airborne, Inc. The two investment bankers, Doseph Shin and Robert Joo, were paid kickbacks by the tippees (Ernesto Sibal, Chae Hyon Chin, Benjamin Chiu, and Pejman Sabet), and the trading generated profits of over $970,000.  Five defendants (all but Joo) settled the SEC civil complaint by agreeing to pay a total of approximately $1.1 million in disgorgement, penalties, and interest, and agreed to plead guilty to conspiracy to commit securities and wire fraud.  Joo was indicted on eight count, including conspiracy, securities fraud, conspiracy to obstruct the SEC investigation, and making material false statements under oath to the SEC and FBI.  The SEC Litigation Release is here, and a press release from the USAO is here. (ph)

Insider Trading, Prosecutions | Permalink

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