Aggarwal, 2 of his friends made $600,000 illegally, say charges.
Raif Karerat
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A former Indian American analyst with J.P. Morgan Securities and two friends, who prosecutors say made more than $600,000 by trading on inside information, have been indicted on federal charges, prosecutors said on Tuesday.
Ashish Aggarwal, 27, Shahriyar Bolandian, 26, and Kevan Sadigh, 28, were each charged in the indictment, which was handed down in U.S. District Court in Los Angeles, with multiple counts of securities fraud.
The three men stand accused of netting illegal profits by trading in advance of two acquisitions, in 2012 and 2013, that had not been announced publicly.
Aggarwal was working in J.P. Morgan’s offices in San Francisco at the time of the infractions, according to court documents.
Specifically, Aggarwal has been charged with obtaining inside information about Integrated Device Technology’s planned acquisition of PLX Technology Inc., and Salesforce.com Inc.’s June 2013 acquisition of ExactTarget Inc. and tipping off Bolandian.
Bolandian is accused of then sharing that information with Sadigh.
Each defendant was charged with one count of conspiracy to commit securities and tender offer fraud, 13 counts of securities fraud, 13 counts of tender offer fraud and three counts of wire fraud. Bolandian also is charged with a single count of money laundering, reported Reuters.
If convicted, each defendant faces up to five years in prison for the conspiracy count and 20 years behind bars for each of the substantive fraud counts, said Thom Mrozek, a spokesman for the U.S. Attorney’s Office in Los Angeles.
The U.S. Securities and Exchange Commission filed a related civil lawsuit against the three men on Tuesday as well.
1 Comment
The father is a rip off artist. He took his wife to the cleaners. The daughter abuses her work to insert damaging information into clients medical records. A smart son is accused of inside trading! What a family of thieves.