Former Bear Stearns Rep. Settles Insider Trading Charges

Nov 21 2007 | 10:53am ET

Chalk up another black mark for Bear Stearns. Andrew Srebnik, a former registered representative at the beleaguered firm, has settled charges brought against him for illegal insider trading. 

According to the Securities and Exchange Commission, Srebnik was involved in an insider trading scheme that included employees of UBS Securities and Morgan Stanley. The scheme’s point man was Mitchel Guttenberg, an executive director in the equity research department of UBS, who, from at least 2001 through 2006, allegedly gave material, nonpublic information concerning upcoming UBS analyst upgrades and downgrades to at least two Wall Street traders, Erik Franklin and David Tavdy. In exchange for the tips, he shared in the profits from their trading on that information.

Franklin allegedly traded on this insider information for a hedge fund he managed at Bear Stearns, dubbed Lyford Cay Capital, and in his personal accounts at the Wall Street firm.

Srebnik, who worked on a trading desk at Bear Stearns, had access to Franklin's trading information and used the UBS tips to purchase and sell securities in his personal account.

Without admitting or denying the allegations in the complaint, Srebnik has agreed to pay a disgorgement of $54,730 and a civil penalty of $23,178. He is also barred from association with any broker, dealer, or investment adviser.


In Depth

Bob Doll's Ten Market Predictions For 2016

Jan 7 2016 | 9:37pm ET

Well-known market strategist Robert Doll has published his annual list of ten predictions...

Lifestyle

Citadel's Ken Griffin Donates $40M To New York's Museum of Modern Art

Dec 22 2015 | 9:23pm ET

Citadel founder Ken Griffin has donated $40 million to New York’s Museum of Modern...

Guest Contributor

Hedge Fund Marketing - Making the Most of Your Salesperson

Jan 20 2016 | 8:11pm ET

In this contributed article, Bruce Frumerman of Frumerman & Nemeth takes a close...