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

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of