Former Stock Broker Pleads Guilty in Manhattan Federal Court to Insider Trading Charges | WPN World People News

Preet Bharara, the United States Attorney for the Southern District of New York, announced that Thomas C. Conradt, a former stock broker at a securities trading firm (“Securities Trading Firm-1”), pled guilty today in Manhattan federal court to charges arising from his involvement in an insider trading scheme. The alleged scheme involved the misappropriation of material, non-public information (“inside information”) concerning IBM’s acquisition of a software company, SPSS Inc., in 2009. Conradt was charged in November 2012 and pled guilty today before U.S. District Judge Andrew L. Carter, Jr. pursuant to a cooperation agreement.

According to the Indictment to which Conradt pled guilty, statements made during the plea proceeding, and other court documents:

The inside information concerning IBM’s acquisition of SPSS originated from a corporate lawyer who was part of the legal team that represented IBM in the transaction (“Attorney-1”) in 2009. On May 31, 2009, Attorney-1 shared inside information concerning the transaction, including the names of the parties and the fact that IBM was going to acquire SPSS for a significant premium over its market price, with his close friend, Trent Martin, a former research analyst at an international financial services firm. The information was shared in confidence and, based on their longstanding history of sharing confidences, Attorney-1 expected that Martin would not share the information or use it to trade.

However, in June and July 2009, Martin bought SPSS common stock and call option contracts based on the Inside Information he was given by Attorney-1 and, in turn, shared the tip with his roommate, Conradt, who worked as a stock broker at a securities trading firm (“Securities Trading Firm-1”). In June and July 2009, Conradt bought SPSS common stock and tipped David J. Weishaus, his co-worker at Securities Trading Firm-1, who also bought SPSS common stock and call options. Conradt and Weishaus also tipped their co-workers at Securities Trading Firm-1 (“CC-1 and CC-2”), who then bought SPSS call option contracts. When IBM announced its acquisition of SPSS on July 28, 2009, the share price of SPSS common stock rose by 41 percent in one day. Thereafter, Martin, Conradt, Weishaus, CC-1, and CC-2 sold their SPSS positions, yielding total profits of approximately $1 million.

Preet Bharara, the United States Attorney for the Southern District of New York, announced that Thomas C. Conradt, a former stock broker at a securities trading firm (“Securities Trading Firm-1”), pled guilty today in Manhattan federal court to charges arising from his involvement in an insider trading scheme. The alleged scheme involved the misappropriation of material, non-public information (“inside information”) concerning IBM’s acquisition of a software company, SPSS Inc., in 2009. Conradt was charged in November 2012 and pled guilty today before U.S. District Judge Andrew L. Carter, Jr. pursuant to a cooperation agreement.

According to the Indictment to which Conradt pled guilty, statements made during the plea proceeding, and other court documents:

The inside information concerning IBM’s acquisition of SPSS originated from a corporate lawyer who was part of the legal team that represented IBM in the transaction (“Attorney-1”) in 2009. On May 31, 2009, Attorney-1 shared inside information concerning the transaction, including the names of the parties and the fact that IBM was going to acquire SPSS for a significant premium over its market price, with his close friend, Trent Martin, a former research analyst at an international financial services firm. The information was shared in confidence and, based on their longstanding history of sharing confidences, Attorney-1 expected that Martin would not share the information or use it to trade.

However, in June and July 2009, Martin bought SPSS common stock and call option contracts based on the Inside Information he was given by Attorney-1 and, in turn, shared the tip with his roommate, Conradt, who worked as a stock broker at a securities trading firm (“Securities Trading Firm-1”). In June and July 2009, Conradt bought SPSS common stock and tipped David J. Weishaus, his co-worker at Securities Trading Firm-1, who also bought SPSS common stock and call options. Conradt and Weishaus also tipped their co-workers at Securities Trading Firm-1 (“CC-1 and CC-2”), who then bought SPSS call option contracts. When IBM announced its acquisition of SPSS on July 28, 2009, the share price of SPSS common stock rose by 41 percent in one day. Thereafter, Martin, Conradt, Weishaus, CC-1, and CC-2 sold their SPSS positions, yielding total profits of approximately $1 million.

Source: U.S. Department of Justice