In the U.S. District Court for the Southern District of New York, former JP Morgan Chase and Credit Suisse investment banker Hafiz Muhammed Zubair Naseem was sentenced to 10 years in prison for his involvement in an insider tip scam.
Prosecutors say that Naseem retrieved insider information from the internal bases of both Credit Suisse and JP Morgan Chase. Confidential information that he pulled from Credit Suisse’s files included data related to possible deals with TXU Corp., John H. Harland Co., Caremark Rx Inc., Hydril Co., Trammell Crow Co., Jacuzzi Brands Inc., Veritas DGC Inc., Energy Partners Ltd., and Northwestern Corp.
Insider information from JP Morgan Chase dealt with possible transactions in Engineered Support Systems, Computer Science Systems, Alliance Data Systems, K2 Inc., Education Management Corp., Aramark Corp., Huntsman Corp., and Northwestern Corp.
Prosecutors also say that Naseem was observed going through papers on analysts’ desks. Naseem would then give the information he acquired to Ajaz Rahim, the investment banking head of Faysal Bank in Pakistan. The two men would then use the information to execute securities transaction.
The investment scheme netted over $7.5 million, and Naseem and Rahim were charged last year. Naseem was convicted on 29 counts of insider trading, and a warrant is still out for Raheem’s arrest.
District Court Judge Robert P. Patterson ordered forfeiture of $7.5 million, three years of supervised release, and a mandatory $2,900 special assessment. Naseem’s lawyer calls his client’s sentence “grossly unfair.”
Investment bank-related misconduct is against the law. If you are an investor who has lost money because of securities fraud, contact Shepherd Smith and Edwards today.
Related Web Resources:
Convicted investment banker to file appeal, Dawn.com, June 10, 2008
Former Credit Suisse Investment Banker Sentenced To 10 Years In Prison For Insider Trading, News for Press.com
Feds Charge Prominent Pakistani Banker In CSFB-TXU Insider Trading Case, Dealbreaker.com, May 30, 2007