Banker Accused of Insider Trading
A former JPMorgan Chase & Co. investment banker was convicted of insider trading after he was accused of passing confidential information to his father about certain deals not yet known to the public.
Sean Stewart is facing prison time plus home detention for his role in providing his father information on five separate deals between 2011 and 2015 involving Kendle International Inc., Kinetic Concepts Inc., Gen-Probe Inc., Lincare Holdings Inc. and CareFusion Corp.
Sean’s father, Robert Stewart, used a co-worker, Richard Cunniffe, to invest on his behalf. The two would then share the profits, which netted roughly $1.4 million in profits. Sean claimed that his father betrayed his trust by trading off information that came up in conversations about his job. The jury did not believe the younger Stewart, convicting him on all nine counts of insider trading-related charges.
The elder Stewart and Cunniffe also pled guilty, with the latter wearing a wire to a meeting with Robert Stewart, at which time Cunniffe gave him cash purporting to be the proceeds from a recent scam.
Sean Stewart also admitted to lying to JPMorgan compliance staff after his father was discovered on a list of names compiled by FINRA in connection with suspicious trading activity possibly related to insider trading.
Think You have Information on Insider Trading?
Despite what may seem to be innocent exchanges of information, trading on insider information not known to the public is illegal.
Call a Los Angeles Securities Attorney Today
If you have questions about information you’ve received or suspicious of insider trading, contact an experienced Los Angeles securities attorney today for a consultation to discuss your rights and options.