Former Credit Suisse Securities USA LLC investment banker Hafiz Naseem says he will appeal his conviction for insider trading charges, which include 1 count of conspiracy and 28 counts of securities fraud involving stolen nonpublic data allegedly used for insider trading that generated at least $7.5 million. He faces a maximum 5-year prison sentence and fines two times the gross loss or gain of the violation.
The Justice Department says that the ex-Credit Suisse Securities investment banker told Ajaz Rahim, a Pakistan resident and the former head of Faysal Bank, about nine upcoming merger and acquisition deals from April 2006 to February 2007 including:
– Apollo Management LP’s Jacuzzi Brands acquisition – NorthWestern Corp.’s acquisition by Babcock & Brown Infrastructure – Veritas DGC Inc.’s acquisition by Compagnie Generale de Geophysique SA
– The merger between Energy Partners Ltd. and Stone Energy Corp.
– The TXU buyout
Rahim then used a Bahrain-based brokerage account to purchase stocks in the deals’ target companies. Although Naseem was not involved in working on any of the acquisition deals, he allegedly poured through internal databases and papers on his coworkers’ desks for confidential data that he passed on to Rahim.
The jury handed out the conviction on February 4 during his second trial. Naseem’s first trial ended in December because two jury members did not follow instructions provided by the court.
If you are an investor who has lost money because of the misconduct of an investment adviser or another member of the securities industry, one of our stockbroker fraud attorneys may be able to assist you. Contact Shepherd Smith and Edwards today.
Related Web Resources:
Ex-Credit Suisse Banker Naseem Convicted Of Insider Trading, Wall Street Journal, February 4, 2008