Insider Trading Cases: Ex-Oppenheimer Adviser Sentenced to Six Months, Las Vegas Sports Gambler is on Trial, and SEC Files Civil Case Against Ex-Home Security Guard
Ex-Oppenheimer Stockbroker Pleads Guilty in Insider Trading Case
David Hobson, an ex-Oppenheimer Holdings (OPY) investment adviser, was sentenced to six months behind bars for insider trading using information provided to him by a friend who was employed with Pfizer Inc. at the time.
Hobson pleaded guilty to the criminal charges against him. He was ordered to forfeit over $385K. His friend, Michael Maciocio, reached a plea deal with prosecutors for his part last year.
Hobson started insider trading in 2008 while employed at RBC Capital Markets and he continued with his illicit activities at Oppenheimer. He was Maciocio’s stockbroker.
Maciocio provided the tips and Hobson would make the trades in both their accounts, as well as in other clients’ accounts. Prosecutors said that Hobson’s illicit trades resulted in him making $165K in profits, $40K for Maciocio, and $150K for some of his other clients.
Las Vegas Gambler is Tried in New York on Insider Trading Charges
William T. Walters, a Las Vegas sports gambler, is currently on trial in Manhattan. He is accused of obtaining an illegal stock tip from a Dean Foods director.
According to prosecutors, Walters made profits and avoided losses of over $40M because of the tip involved Dean Foods, a milk processing company. Prosecutors said that then-Dean Foods chairman Thomas C. Davis provided the tip. Davis, who has admitted his involvement, is now a government witness. Meantime, Walters’ legal defense team maintains that their client did not engage in insider trading, describing him as a skilled and experienced trader.
Sparking additional public interest in Walters’ criminal trial is the question of whether professional golfer Phil Mickelson will take the stand. Although he has not been criminal charged, he is a relief defendant in a civil case. Mickelson agreed to hand over more than $1M he made because of the trade from the illegal tip.
Ex-Home security Guard of HJ Heinz Co. board Member Accused Of Insider Trading
Todd David Albert is now the defendant in a civil suit brought by the US Securities and Exchange Commission. Albert is the former of security guard of a HJ Heinz Co. board member.
According to the regulator, Albert engaged in insider trading before 3G Capital and Warren Buffet took over the Ketchup making company. Heinz and Kraft have since merged together.
Albert allegedly found out about the deal through an email account that he monitored on the job. According to authorities, one email that he read included the proposed price for the potential merger and Albert asked his broker to purchase 1,000 Heinz shares for him. He also purchased call options that allowed him to buy stock at more than $12 under the proposed price.
Albert contacted his broker again as soon as the deal was made public. He allegedly sold off his position and making almost $44K as a result.
The SSEK Partners Group is a securities fraud law firm that represents high net worth individual investors and institutional investors.
Stockbroker Is Sentenced to Six Months’ Imprisonment for Insider Trading, NY Times, March 15, 2017
Court Enters Final Judgments Against Two Rhode Island Men Charged With Insider Trading, SEC, March 15, 2017