Former UBS Executive Mitchel Guttenberg is looking at a possible 90 years in prison. Guttenberg recently pled guilty to two counts of conspiracy and four counts of securities fraud for his involvement in an insider trading scam.
Prosecutors had accused Guttenberg of selling nonpublic data from UBS stock analysts about potential downgrades and upgrades to trader to David Tavdy. Tavdy then allegedly used this private information to illegally make at least $15 million for hedge funds and $10 million by trading on his own account.
According to the U.S. Justice Department, Guttenberg repeatedly sold insider information to Tavdy over a nearly five-year period.
Guttenberg is one of over a dozen people, including attorneys and securities professionals, who were involved in two massive insider trading schemes.
More Insider Trading Guilty Pleas and Sentences;
Ex-Morgan Stanley compliance attorney Randi Collotta was sentenced to four years’ probation for providing insider information about Morgan Stanley to her husband Christopher and others. Christopher must serve three years’ probation.
Former Bank of America Corp. securities trader Paul Risoli was issued a seven-month jail sentence, in addition to two months supervised release after pleading guilty to one count of wire fraud and one count of conspiracy to commit wire fraud and commercial bribery. He was also ordered to forfeit $12,500.
Risoli was indicted a year ago for allegedly allocating shares in initial public offerings and secondary ones to someone at Q Capital Investment Partners LP in return for kickbacks.
In January, Laurence McKeever, a stockbroker, pled guilty to charges that he tried to conceal illegal trading activities and received $50,000 in return.
It is wrong for an investor to ever lose money because of the negligence or misconduct of a member of the securities industry. Shepherd Smith and Edwards has helped thousands of investors get their money back.
Related Web Resources:
Guttenberg & Tavdy Guilty Pleas, USDoj.gov, February 27, 2008
UBS Executive and Former Morgan Stanley Lawyer Among 13 Charged in Massive Insider Trading Schemes, Department of Justice, March 1, 2007