Day Trader Pleads Guilty to Securities Fraud Charges Related to Insider Trading Scam

Day trader Daniel Corbin has pleaded guilty to a securities fraud charge accusing him of conspiring to make illegal trades based on confidential tips from the wife of an ex-Lehman Brothers salesman. He was one of five people indicted over this insider trading scam in 2008 and the last to plead guilty.

Corbin says that it was his partner, Jamil Bouchareb, who gained access to the material non-public information about Veritas DGC Inc. The information came from ex-Lehman Brothers salesman Matthew Devlin whose wife Nina Devlin worked at the public relations company Brunswick Group LLC at the time and had access to information about mergers and other deals. Devlin gave away that information without her consent.

Following the insider tip, Corbin and Bouchareb used their joint account to purchase 2,500 shares of the company on September 1, 2006. On September 5, 2006, Compagnie Generale de Geophysique SA purchased Veritas DGC. Corbin and Bouchareb made a $16,000 profit from the trade.

In federal court last week, Corbin told the US Magistrate Judge that he suspected that the information Bouchareb obtained wasn’t public but still went along with his partner. Bouchareb was among those who were indicted and pleaded guilty, as did Devlin, who pleaded guilty to one count of securities fraud and four counts of conspiracy over the improper sharing of information, ex-Lehman salesman Frederick Bowers, and tax attorney Eric Holzer, who used to work at Paul Hastings Janofsky & Walker LLP.

Our stockbroker fraud lawyers represent clients that have sustained financial losses because of insider trading, stockbroker fraud, and other forms of broker misconduct, including margin account abuse, unsuitability, churning, misrepresentation and omissions, failure to execute trades, unsuitability, failure to supervise, breach of fiduciary duty, breach of promise/contract, margin account abuse, negligence, unauthorized trading, and registration violations.

Trader Daniel Corbin Pleads Guilty in New York Federal Court, Bloomberg Businessweek, May 16, 2011
Florida Trader Pleads Guilty in ’06 Insider-Trading Scheme, The Wall Street Journal, May 16, 2011

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Motion to Dismiss SEC Lawsuit Accusing Dallas Billionaire Brothers of $500,000 Securities Fraud Denied, Stockbroker Fraud Blog, April 1, 2011
Ex-Goldman Sachs Board Member Accused of Insider Trading with Galleon Group Co-Founder Seeks to Have SEC Administrative Case Against Him Dropped, Institutional Investors Securities Blog, April 19, 2011
Guilty Plea for Financial Adviser Who Used UBS Tips in $1M Healthcare Insider Trading Scheme, Stockbroker Fraud Blog, January 28, 2011