The US Securities and Exchange Commission (SEC) recently said that it has obtained a final judgement against Sean Stewart. The banker was involved in an insider trading scheme.
A father-son insider trading conspiracy
The US recently said that it has obtained a final judgement against banker Sean Stewart. He was a part of a father-son insider trading scheme that involved five different health care companies. The conspiracy was carried on for four years which involved transactions like the acquisition of Kendle International. The regulated said that he leaked nonpublic information about tender offers, mergers, and acquisitions.
Between 2011 and 2015, he passed confidential details about the clients of the banks. The information went on to co-conspirators in many cases, who then went to trade on the tips. The insider trading conspiracy involved transactions like the acquisition of Kendle International Inc. by INC Research, LLC. The transaction generated a profit of $1.1 million.
Sentenced to prison
Sean Stewart pled guilty for passing information to his father Robert about the future acquisitions and mergers. It involved clients like Perella Weinberg Partners and JPMorgan Chase & Co. His son worked for two investment banks but he claimed at the trial that he was unaware of his father’s sharing of the information with Richard Cunniffe. The man was a partner and trading on the information provided to him.
During this time, Robert tipped Cunniffe, who was a cooperating witness and co-conspirator, he said that he was very close to the source to the trading stocks from his own account. He also asked Cunniffe to buy all the call options for the stake owned by Sean in his own brokerage account. Cunniffe said yes to the agreement and mirrored the trades for his own benefit.
The complaint suggests that the former executive violated federal laws by using the information on nonpublic events related to some equities. All the defendants were arrested in the case and were charged with a multi-count indictment for the involvement in the insider trading scheme.