A small group of people have been arrested and charged with insider trading, some of which is alleged to have happened in Florida. The seven people have been indicted on charges stemming from activity in Florida and four other states; six have already pled guilty to the charges.

In total, the individuals are accused of making $11 million in profit from their fraudulent behavior. It is still unclear how this has affected Florida investors, but more will likely be discovered as the only individual who has not admitted his guilt is brought to trial. With this multimillion-dollar scheme in place, however, it would not be surprising if this greatly affected people in the Miami area.

This blog has talked about the important trust that Florida individuals give their stockbrokers and bankers. Because these individuals are dealing with such important assets, it is vital that they are acting honestly and truthfully with Floridians’ money. When they don’t, they not only have broken the trust of their clients, but it is also quite clear that their actions risk their clients’ financial security.

In this case, a 31-year-old former banker stands accused of insider trading after he apparently used information about planned mergers to make some profitable stock purchases. Six others had also been charged, including the banker’s stockbroker friend and the stockbroker’s girlfriend.

These are more than just crimes of greed; rather, they are crimes that capitalize on others’ trust and end up leaving individuals in financial ruins. Stop by our website to learn more about the multiple violations of securities law that we deal with in our practice every day.

Source: The Miami Herald, “Ex-Wells Fargo banker charged with insider trading,” Dec. 13, 2012

EN   ES   PT     

Miami Office
Grand Bay Plaza
2665 S. Bayshore Drive
Penthouse 2B
Miami, FL 33133
Telephone: 786.628.8236

Los Angeles Office
Available by Appointment
2029 Century Park East
Century Plaza Tower
Suite 400N
Los Angeles, CA 90067
Telephone: 424.544.7930

New York City Office
Available by Appointment
14 Wall St, 20th Floor
New York, NY 10005
Telephone: 917.382.5217

West Palm Beach Office
Northbridge Centre
515 N. Flagler Drive, Suite P-300
West Palm Beach, FL 33401
Telephone: 561.475.2887

Detroit Office
41000 Woodward Avenue,
Suite 350 East
Bloomfield Hills, Mi 48304
Telephone: 248.368.0182