Sunday, 23 April 2017
Last updated 1 day ago
Aug 3 2007 | 1:58pm ET
A former Banc of America Securities broker admitted to taking kickbacks in exchange for giving a hedge fund access to new securities offerings.
Paul Risoli pleaded guilty yesterday to one count apiece of conspiracy and wire fraud in Manhattan federal court. He is just one of 13 people accused of leaking information to hedge funds in March, he is to be sentenced on Nov. 9.
Prosecutors say Risoli, who left BofA in February, accepted at least $9,500 in kickbacks from Erik Franklin, an analyst at hedge fund Q Capital, from late 2005 through last October. Risoli then allocated shares of both initial public offerings and secondary offerings to Q Capital, which turned at least $160,000 in profit from the deals.
Franklin pleaded guilty to conspiracy, securities fraud and other charges in February.