Feds Crack Cunning Golf-Based Insider-Trading Code

Robert and Sean Stewart know what we're talking about.
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"It'll be like 50 balls per share, ya get me?"

Father-and-son Robert and Sean Stewart, the latter of Perella Weinberg Partners, thought it might take Alan Turing or Benedict Cumberbatch to crack Enigma-level communiqués like, “Take a three wood to the par 5, which is buying the par 2. Then put the deposit down on the country club for my wedding.” But those are weird things to say to one another over e-mail, and the kind of thing that Preet Bharara’s gonna take a close look at when he thinks he’s got you nailed for insider-trading.

Sean Stewart, 34, routinely tipped his father about mergers being worked on at Perella and JPMorgan Chase & Co, where he worked until 2011, according to a complaint filed in Manhattan federal court. The tips enabled Robert Stewart, 60, and a friend to make $1.16 million, the complaint said...Authorities said Sean Stewart routinely tipped his father about mergers the banks worked on in exchange for benefits including $10,000 for his 2011 wedding...The complaint alleges that the two men also used references to golf in email in an effort to furtively discuss their insider trading.

U.S. charges Perella Weinberg banker, father for insider trading [Reuters]
Perella Weinberg Banker Charged in Insider Case [WSJ]
Perfect Insider Traders Got Caught [BloombergView / Matt Levine]

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