Monday, October 31, 2016

Oppenheimer Adviser Pleads to Insider Trading Charges

With insider trading law up in the air after the Second Circuit decision in US v. Newman and the conflicting decision from the First Circuit in US vs. McPhail, there has been a apparent lull in insider trading cases.

That lull may be over. Although the Supreme Court has no yet ruled on the conflict between the Circuits, prosecutors are pushing forward.

Last week a former investment adviser at Oppenheimer pled guilty to charges that he engaged in an insider trading scheme based on information supplied by a childhood friend working at Pfizer Inc.

The charges relate to conduct that began while he was at RBC Capital Markets and then continued at Oppenheimer & Co Inc. According to press reports, the broker admitted that he executed trades based on inside information supplied by a friend at Pfizer who pleaded guilty in May as part of a deal to cooperate with prosecutors.

Under a plea agreement, the broker agreed to forfeit almost $386,000 and not appeal any prison sentence of 2-1/2 years or less.

Ex-Oppenheimer adviser pleads guilty to U.S. insider trading charges:


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