Two former stock brokers at a Connecticut financial services company were charged with criminal insider trading on Thursday over a 2009 acquisition by computer giant IBM Corp.
U.S. authorities said Thomas Conradt, David Weishaus and three unnamed colleagues made more than $1 million in illicit gains by trading in shares of SPSS Inc before IBM agreed on July 28, 2009, to buy the Chicago-based software company for $1.2 billion.
The criminal indictment details a trail of instant messages involving the men about their activity, some of which refer to other insider-trading cases involving homemaking doyenne Martha Stewart and the billionaire Mark Cuban.
Prosecutors said the scheme got its start with a tip from an associate at the New York law firm that represented IBM in the transaction. Prosecutors did not name the law firm, but Cravath Swaine & Moore has said it was IBM's representative.
"Thomas Conradt, David Weishaus and their co-conspirators engaged in a
This article is only available in full to Compliance Complete
North America Subscribers who are logged in.
Please log in to see if you can view this content.