Avaneesh Krishnamoorthy, an ex-risk manager for Nomura Holdings Inc. in the USA, has been sentenced to three months in prison. Krishnamoorthy pleaded guilty earlier this year to securities fraud related to allegations that he traded on information about Golden Gate Capital LP’s plans to buy NeuStar Inc. He made $48K in the process.
The ex-Nomura risk manager, who was a firm vice president, purchased hundreds of NeuStar shares using an undisclosed brokerage account belonging to his wife. He did this after reading an internal confidential email about the planned purchase. Nomura helped finance the deal.
In September, the US Securities and Exchange Commission announced that a final judgment had been reached in its civil case against Krishnamoorthy. Under the terms of the judgment, the ex-Nomura holdings manager is permanently enjoined from violating sections of the Securities Exchange Act of 1934, rule 10b-5 thereunder, and the Securities Act of 1933. He also is liable for almost $79K of disgorgement that would be considered fulfilled either by submission of a forfeiture order in the criminal case against him or proof of payment. Additionally, the former Nomura VP was ordered to pay more than $1200K in interest and serve permanent bars from involvement in penny stock offerings and the securities industry.
In other news involving the SEC and Nomura, the regulator is asking a federal judge not to drop the its claims against Tyler Peters, an ex-Nomura trader. Peters was acquitted on criminal charges related to residential mortgage-backed securities fraud allegations.
He and two others were accused of misrepresenting the prices paid for the securities, which they then sold to institutional investors. Now, Peters wants the civil case against him dismissed.
As for the two other Nomura traders accused by the US Department of Justice of RMBS fraud, Michael Gramins was found guilty of wire fraud and conspiring to commit securities fraud, while the jury was deadlocked on two fraud counts. Gramins was found not guilty of six other criminal counts. He faces a prison sentence of up to five years for the wire fraud conviction. The third defendant, Ross Shapiro, was found not guilty on eight criminal counts. Jurors, however, were unable to come to a verdict on the conspiracy charge against him.
Ex-Nomura Manager Gets 3 Months in Jail for Insider Trading, Bloomberg, November 28, 2017
SEC Obtains Final Judgment Against Investment Bank VP Charged With Insider Trading, SEC, September 29, 2017
SEC Defends Fraud Claims Against Ex-Nomura Trader, Law360, November 29, 2017
More Blog Posts:
Ex-Investment Adviser is Accused of Defrauding Retirees of Over $1.85M, Stockbroker Fraud Blog, November 13, 2017
Credit Suisse Resolves NY Regulator’s Forex Rigging Probe for $135M, Institutional Investor Securities Blog, November 15, 2017
SEC Orders Wells Fargo Advisors to Pay $3.5M Penalty, Institutional Investor Securities Blog, November 13, 2017