Tuesday, April 13, 2010

White Collar and Securities: Miami Man Indicted for Insider Trading

A federal grand jury in the Southern District of New York has handed down an indictment charging Daniel Corbin with participating in an insider trading ring. The indictment alleges that Corbin netted $2.1 million from the scheme. The government claims that Corbin obtained tips about upcoming mergers and acquisition and then traded on this non-public information. The indictment follows a 2008 indictment of Corbin charging him with securities fraud and conspiracy to commit securities fraud. The new indictment also includes charges of securities fraud and a count of conspiracy to commit securities fraud.

The indictment alleges that Corbin was part of a scheme involving Jamil Bouchareb and Matthew Devlin. Devlin's wife worked for an international public relations firm. In her position Devlin's wife became aware of material information about mergers and acquisitions before the news became public. Mrs. Devlin discussed what she had learned at work with her husband who then passed the information to Corbin and Bouchareb. The tippees executed trades based on the material non-public information they had received from Devlin. Corbin and Bouchareb rewarded Devlin for the information that he provided to them.

Devlin and Bouchareb have both pleaded guilty to charges in connection with the scheme. Corbin has pleaded not guilty to all charges.

For more about the charges against Corbin, please see The Miami Herald, "More Insider-Trade Charges for Miami Beach Resident," April 13, 2010, http://www.miamiherald.com/2010/04/13/1576339/more-insider-trade-charges-for.html

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