Friday, 25 July 2014
Last updated 2 hours ago
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.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…