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Law Firm Employee Misjudged The Coast Being Clear Re: Relaunching His Insider Trading Career

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In April 2011, Wilson Sonsini Goodrich & Rosati employee Matthew Kluger was charged with insider trading with a couple of his buddies, in a scheme that went back some 17-odd years. This spooked a fellow WSG&R employee named Dimitry Braverman, because unbeknownst to the Feds, he was running a little insider trading campaign of his own, separate from Kluger's. Despite the fact that he probably worried about having gaps in his résumé (2009-2011 Insider Trading Professional, 2011-, ???), Braverman decided to pump the brakes on the material non-public information stuff for a while, the Kluger business likely being a bit too close for comfort. About a year later, though, not too long after Kluger was handed the longest insider trading sentence in U.S. history, Braverman got that familiar itch again, an itch more powerful than any fears of getting caught, which he presumably dismissed with a "Fuck it. I'm getting back in the game."

An information technology engineer at Wilson Sonsini Goodrich & Rosati pleaded guilty on Thursday to insider trading based on information he learned while working at the prominent Silicon Valley law firm.

Dimitry Braverman, 41, pleaded guilty in New York federal court to one count of securities fraud, two years after another Wilson Sonsini employee, attorney Matthew Kluger, received the longest insider trading prison sentence in history in a separate case in New Jersey. "I'm very sorry for my actions, and I'm ready to forfeit my profits," Braverman told U.S. District Judge Paul Engelmeyer. Prosecutors accused Braverman of making nearly $300,000 from 2010 to 2013 by illegally trading in stocks and options of eight companies involved in deals for which Wilson Sonsini was providing legal counsel. In April 2011, Kluger was charged with a separate insider trading scheme, prompting Braverman to put his fraud on hold temporarily, prosecutors said. Following Kluger's arrest, Wilson Sonsini's general counsel emailed employees to remind them of the firm's policies on insider trading, according to court documents.

But prosecutors said Braverman started back up again in 2012, just months after Kluger was sentenced to a record 12 years in prison. Braverman had access to information about pending transactions through his job working on software for the firm's finance operations, prosecutors said. The companies in which he traded included Inc, Seagate Technology Plc and Dealertrack Technologies Inc, authorities said.

Will his sentence reflect his apparent willingness to forfeit his profits without delay? Stay tuned.*

Wilson Sonsini employee pleads guilty to insider trading in N.Y. [Reuters]

Related: Accused Insider Traders Argue Over How Much Effort They’ll Exert To Destroy Evidence Like Two Guys Debating Whether It’s Worth Paying the Extra $5 For Getting The Pizza Delivered Rather Than Picking It Up Down The Block; Convicted Insider Trader Matthew Kluger “Shocked” To Find Out He Couldn’t Trust The Guys With Whom He Was Committing Federal Crimes

*Probably not, usually the authorities are pretty good at making you forfeit your profits, and don't give a fuck if you're "ready" to return them.


Bristol-Meyers Squibb Employee Conducted Numerous Internet Searches Re: How To Not Get Caught Insider Trading Before Engaging In Insider Trading

Which, it turns out, were not very helpful. Mr. Ramnarine, who served as assistant treasurer for capital markets at Bristol-Meyers Squibb from June, 2011, was charged in New Jersey federal court with three counts of securities fraud related to alleged insider trading in the stocks of three companies Bristol-Meyers was targeting for acquisition. According to the complaint, about a week before some of the alleged trading, Mr. Ramnarine opened up Yahoo on his office computer in Princeton, NJ and entered a flurry of searches, including “can option be traced to purchaser,” “can stock option be traced to purchase inside trading,” “insider trading options traceillegal [sic].” Mr. Ramnarine also looked at web sites and articles discussing insider trading laws and ways to avoid insider trading violations, and even downloaded press releases on insider trading from the office of the Securities and Exchange Commission, according to the complaint. Lessons In How Not To Insider Trade [Deal Journal] US v. Robert Ramnarine [Criminal Complaint]

Tiger Asia's Founder Is Happy To Have Learned His Lesson Re: Wire Fraud And Insider Trading

Earlier today, Bill Hwang, the founder of the Tiger Cub's Asia-based branch, Tiger Asia, pleaded guilty to one count of wire fraud and agreed to fork over $44 million to make allegations by the SEC of insider trading in Chinese bank stocks go away. According to Hwang, his firm "regrets the actions for which is accepts responsibility today and is grateful that this matter is now resolved." According to SEC director of enforcement Robert Khuzami, who we would love to consider a side job writing fables for children* about foxes who trade on unreleased information about clinical trials of Alzheimer's drugs and take advantage of innocent hens, Hwang was a very bad boy and should serve as a cautionary tale for anyone thinking about breaking the law.