Former investment fund analyst arrested after skipping trial20
Source: Associated Press
Former investment fund analyst arrested after skipping trial
Updated 8:10 pm, Monday, January 23, 2017
NEW YORK (AP) A former analyst for a private investment fund has been arrested after he failed to show up for his insider trading trial.
John Afriyie was arrested at an East Windsor, New Jersey, hotel Monday and brought to Manhattan federal court.
An arrest warrant was issued after the former analyst for Michael Dell's personal investment firm, MSD Capital, failed to show up for trial on securities and wire fraud charges. He has pleaded not guilty to charges accusing him of using inside information to earn $1.5 million illegally.
Federal Judge Paul Engelmayer revoked his bail, saying he was "overwhelmingly, by any standard, a risk of flight."
Read more: http://www.chron.com/news/crime/article/New-Jersey-man-arrested-after-not-showing-up-for-10878150.php
Trading On Inside Information While Posing As Your Own Mother Is Not Legal: Preet Bharara
By THORNTON MCENERY
Apr 15, 2016 at 11:36 AM
Trading On Inside Information While Posing As Your Own Mother Is Not Legal: Preet Bharara | Dealbreaker
Heres a conundrum: Youre an analyst at a fund who just came across some sweet inside info on a pending private equity deal, and you just know that you could turn a tidy little profit if you could somehow manage to pull off a small trade and grab a taste just a taste. But how?
And dont forget Preet Bharara is out there. Hunting. Tenaciously stalking small fires like you in order to prove once and for all that insider trading is still a thing that exists. You gotta play this smart.
Or if youre John Afriyie, formerly of MSD Capital, you play it not very smart at all.
Take it away, Preet:
In February of this year, John Afriyie made a quick $1.5 million profit by trading in options of ADT stock. His profits were not the result of trading acumen, diligent research, or blind luck, but rather the alleged spoils of criminal insider trading. Afriyie allegedly traded on material nonpublic information he had obtained about a pending acquisition of ADT that had not yet been made public.
http://dealbreaker.com/2016/04/trading-on-inside-information-while-posing-as-your-own-mother-is-not-legal-preet-bharara/
Dustlawyer
(10,494 posts)Scruffy1
(3,252 posts)Many of the public have been confused by stupid internet posts to believe this. The problem with Congress is not inside information about a company, but with no way to keep them from investing in companies that would be affected by pending legislation. Personally, I think the rule should be that if you want to be in the Congress you would have to put all your assets in a blind trust. But, it's not going to happen.
Dustlawyer
(10,494 posts)Congress got heat for being able to trade on non-public info they receive and took away this privilege. 10 months later they quickly and quietly gave this power back to themselves. Not exactly the same as insider trading, but close enough to make them rich.