Federal prosecutors in Manhattan are investigating whether a securities broker and his associates traded on confidential information illegally obtained from Morgan Stanley about planned mergers and acquisitions, according to sources familiar with the matter. In a subpoena issued last month, prosecutors sought records relating to Spartan Capital Securities broker Jordan Meadow and his communications with five people, including a former Morgan Stanley employee, about potential merger and acquisition deals.
The subpoena, reviewed by the The Wall Street Journalsays the Manhattan attorney general’s office was investigating possible insider trading, securities fraud and other misdemeanors.
Prosecutors are looking into whether Meadow accessed the email account of a former Morgan Stanley executive assistant to obtain confidential information about those deals, one of the sources said. Morgan Stanley has not been accused of wrongdoing.
One deal involved the planned acquisition of software maker VMware by semiconductor giant Broadcom. The subpoena also asked for records relating to Canadian pulp and paper maker Paper Excellence and its US rival Domtar. Paper Excellence acquired Domtar in 2021 for around $3 billion.
Last week, a federal grand jury convicted Brijesh Goel, a former Goldman Sachs Group investment banker, of insider trading and obstruction of justice.
During squash games, Goel tipped off a friend about confidential information about future mergers and acquisitions that Goldman was considering financing, prosecutors said.
Former Representative Stephen Buyer, a Republican from Indiana, was convicted of insider trading after a trial in March following allegations that he made timely securities transactions based on confidential information he stole while doing consulting work. Source: Dow Jones Newswires.
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