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Reuters – Two U.S. Securities and Exchange Commission enforcement lawyers are under investigation by federal criminal authorities for allegedly using insider information to trade stocks, a report by the SEC’s internal watchdog said.
The Federal Bureau of Investigation and U.S. Attorney’s Office are conducting an investigation of possible criminal and civil violations.
The report alleges the two lawyers traded in stock of a large financial services company even though another SEC employee became aware of three separate enforcement investigations of that company. That employee told the two enforcement lawyers that she could not buy more stock in this company because she had become aware of these investigations.
But the two lawyers did trade in the financial services company and denied they heard about the investigations, the report alleges.
Siliconindia.com – An Indian-American investment adviser has been sentenced to 10 years in prison following his conviction on 20 counts of fraud with a scheme that bilked 15 investors of $12.5 million.
Amit Mathur, 38, of Shrewsbury, Massachusetts, was also ordered to pay restitution to his victims by the federal District Court in Worcester, the Boston office of Federal Bureau of Investigation (FBI) said in a release.
Arlington Heights Daily Herald – A missing hedge fund manager who owed investors a $50 million payout told his wife in a note he felt guilty about mismanaging people’s money, and threatened to kill himself, according to a sheriff’s report released Tuesday.
However, the Sarasota County Sheriff’s Office said it believes Arthur G. Nadel planned his disappearance and that it was ending its search for him.
The Federal Bureau of Investigation will continue to investigate complaints from investors who were expecting Nadel to deliver the $50 million redemption on Jan. 15, the day after he disappeared.
