Thursday, April 1, 2021

Brooklyn Man Charged in Long-Running International Insider Trading Scheme

A 10-count indictment was filed in federal court in Brooklyn charging Jason Peltz with securities fraud, money laundering, and tax evasion, among other offenses, including related conspiracy offenses. The charged crimes arise out of a long-running insider trading scheme, in which Peltz executed securities transactions in the brokerage accounts of co-conspirators based on material nonpublic information (“MNPI”) from a variety of sources. Peltz was previously arrested on a complaint in December 2020 and will be arraigned on the indictment at a later date.

According to the US Attorney:
As alleged, Peltz used material nonpublic information about publicly traded companies to line his own pockets and then concealed his illegally earned income to avoid paying taxes...This Office will spare no effort to identify and prosecute defendants who seek to profit from insider trading schemes that harm the investing public and undermine the integrity of our financial markets.”

The FBI added: 

As alleged, today’s indictment details a very deliberate attempt by Peltz to illegally profit from receiving and providing advanced knowledge of nonpublic information about publicly traded companies. When one has access to material, nonpublic information, they’re afforded significant knowledge that could give them a competitive edge in stock and options trading. Exploiting this knowledge is illegal, and the FBI will continue to investigate and prosecute those who cheat the system in this way.
Details of the trading and the allegations are available in the government's press release:

Sallah Astarita & Cox represents defendants accused of insider trading across the country. To speak to one of their experienced securities lawyers call 212-509-6544.