A former Wells Fargo banker was arrested on Thursday on charges of fraud, conspiracy and money laundering resulting from an insider-trading scheme that netted its participants $11 million, the Justice Department said.
John Femenia, 31, stole non-public information about upcoming mergers from the bank, in exchange for kickbacks from his high school friend, Shawn Hegedus, 32, and Hegedus' girlfriend, Danielle Laurenti, 31, prosecutors said.
Hegedus, Laurenti and six others used the information to trade on, the department said.
Hegedus, who is facing the same charges as Femenia, and Laurenti, who is facing the same charges except for bank fraud, are fugitives, the Justice Department said.
The remaining six defendants, a web of friends and acquaintances, who allegedly obtained the nonpublic information, have all agreed to plead guilty to conspiracy to commit insider-trading.
The criminal charges against Femenia come roughly one week after the U.S. Securities
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