Wednesday, 29 March 2017
Last updated 58 min ago
Jan 30 2017 | 6:36pm ET
Former MSD Capital analyst John Afriyie was found guilty of insider trading in federal court on Monday just a week after being arrested on a bench warrant for refusing to show up at his trial.
The jury needed less than three hours to convict Afriyie of securities fraud charges, according to media reports. The case alleged Afriyie used privileged information about Apollo Group’s plans to acquire security company ADT to earn more than $1.5 million trading out-of-the-money ADT call options through a brokerage account held by his mother.
Afriyie’s attorneys argued that the allegedly inside information had become outdated by the time the call options were bought, rendering the actions little more than “lottery tickets,” but the argument failed to persuade the jury.
A second phase of the trial will now determine how much money Afriyie must forfeit, according to a Reuters article Monday. Prosecutors are reportedly seeking around $2.6 million, which includes profits Afriyie allegedly made by re-investing the gains he made through the ADT trade. A companion case brought by the SEC remains pending.
Established in 1998, MSD Capital is the New York-based family office of Dell Technologies founder Michael Dell.